---
title: Quant Letter No. 127: February 2026, Week 2
url: https://www.ml-quant.com/issues/2026-02-12/
site: ML-Quant (https://www.ml-quant.com)
updated: 2026-09-26
license: Summaries CC BY 4.0; links go to the original sources
index: https://www.ml-quant.com/llms.txt
issue_date: 2026-02-12
---


# Quant Letter No. 127: February 2026, Week 2

Sent 2026-02-12. 52 items.

## arXiv

### Historical Trending

- __[Separating Ads from E-commerce](https://arxiv.org/abs/2502.08548v2)__: Ecommerce platforms merging advertising and marketplace roles can disadvantage consumers by lacking effective targeting, ultimately harming societal welfare. (2025-02-12, shares: 0) · https://www.ml-quant.com/papers/arxiv/2502.08548/
- __[Forecasting Demand for Discounted Goods](https://arxiv.org/abs/2602.04464v1)__: Including discounted sales of soon-to-expire perishables in demand forecasts leads to underestimating demand, highlighting the need for better forecasting to reduce inventory waste in grocery stores. (2026-02-04, shares: 0) · https://www.ml-quant.com/papers/arxiv/2602.04464/

## RePEc

### Historical Trending

- __[Predicting VIX with ML](https://econpapers.repec.org/scripts/redir.pf?u=http%3A%2F%2Fhdl.handle.net%2F10.1080%2F14697688.2024.2439458%3Bh%3Drepec%3Ataf%3Aquantf%3Av%3A24%3Ay%3A2024%3Ai%3A12%3Ap%3A1857-1873)__: The study finds that machine learning can better predict VIX by highlighting economic indicators like jobless claims as key factors in market volatility forecasts. (2024-04-20, shares: 12) · https://www.ml-quant.com/papers/repec/taf-quantf-v-24-y-2024-i-12-p-1857-1873/
- __[KSE0 Portfolio Optimization](https://econpapers.repec.org/scripts/redir.pf?u=http%3A%2F%2Flink.springer.com%2F10.1007%2Fs43069-025-00421-4%3Bh%3Drepec%3Aspr%3Asnopef%3Av%3A6%3Ay%3A2025%3Ai%3A1%3Ad%3A10.1007_s43069-025-00421-4)__: This research examines how individual stocks shape trends on the Pakistan Stock Exchange and suggests a machine learning-based optimal portfolio allocation strategy. (2025-03-12, shares: 10) · https://www.ml-quant.com/papers/repec/spr-snopef-v-6-y-2025-i-1-d-10-1007-s43069-025-00421-4/
- __[Automated Trading for Emerging Markets](https://econpapers.repec.org/scripts/redir.pf?u=http%3A%2F%2Flink.springer.com%2F10.1186%2Fs40854-025-00754-3%3Bh%3Drepec%3Aspr%3Afininn%3Av%3A11%3Ay%3A2025%3Ai%3A1%3Ad%3A10.1186_s40854-025-00754-3)__: The study introduces an Adaptive Trading System designed for emerging market portfolios to mitigate losses during downturns and curb capital outflows in crises. (2025-11-03, shares: 9) · https://www.ml-quant.com/papers/repec/spr-fininn-v-11-y-2025-i-1-d-10-1186-s40854-025-00754-3/
- __[Risk Parity in Dynamic Markets](https://econpapers.repec.org/scripts/redir.pf?u=https%3A%2F%2Fdoi.org%2F10.1111%2Fjtsa.12792%3Bh%3Drepec%3Abla%3Ajtsera%3Av%3A46%3Ay%3A2025%3Ai%3A2%3Ap%3A353-377)__: This paper presents a new method for optimizing risk parity portfolios, aiming to lower sensitivity to market volatility and boost risk-adjusted returns in challenging times. (2025-08-07, shares: 9) · https://www.ml-quant.com/papers/repec/bla-jtsera-v-46-y-2025-i-2-p-353-377/
- __[Deep Learning vs. Traditional in Eurozone Banking](https://econpapers.repec.org/scripts/redir.pf?u=http%3A%2F%2Fwww.icfm.ro%2FRePEc%2Fvls%2Fvls_pdf%2Fvol28i4p29-42.pdf%3Bh%3Drepec%3Avls%3Afinstu%3Av%3A28%3Ay%3A2024%3Ai%3A4%3Ap%3A29-42)__: In the European banking sector, traditional machine learning models outperform deep learning in predicting stock price movements, revealing potential issues with advanced models' data requirements. (2024-05-27, shares: 7) · https://www.ml-quant.com/papers/repec/vls-finstu-v-28-y-2024-i-4-p-29-42/
- __[Evaluating Adaptive Market Hypothesis](https://econpapers.repec.org/scripts/redir.pf?u=https%3A%2F%2Farchive.conscientiabeam.com%2Findex.php%2F29%2Farticle%2Fview%2F4102%2F8464%3Bh%3Drepec%3Apkp%3Ateafle%3Av%3A12%3Ay%3A2025%3Ai%3A1%3Ap%3A120-142%3Aid%3A4102)__: Sharpe Ratio trading strategies outperform buy-and-hold methods, aligning with the Adaptive Market Hypothesis due to performance fluctuations across global markets. (2025-02-02, shares: 8) · https://www.ml-quant.com/papers/repec/pkp-teafle-v-12-y-2025-i-1-p-120-142-id-4102/
- __[News Sentiment and Stock Volatility](https://econpapers.repec.org/scripts/redir.pf?u=http%3A%2F%2Fwww.sciencedirect.com%2Fscience%2Farticle%2Fpii%2FS0165176524006086%3Bh%3Drepec%3Aeee%3Aecolet%3Av%3A247%3Ay%3A2025%3Ai%3Ac%3As0165176524006086)__: Accurate assessment of news sentiment affects stock return volatility, with GPT-4 outperforming RavenPack in analyzing the Dow Jones index. (2025-01-25, shares: 6) · https://www.ml-quant.com/papers/repec/eee-ecolet-v-247-y-2025-i-c-s0165176524006086/
- __[Modeling Chinese Financial Markets](https://econpapers.repec.org/scripts/redir.pf?u=http%3A%2F%2Fhdl.handle.net%2F10.1080%2F01605682.2024.2329156%3Bh%3Drepec%3Ataf%3Atjorxx%3Av%3A76%3Ay%3A2025%3Ai%3A1%3Ap%3A97-110)__: A novel machine learning method shows superior accuracy and flexibility in financial modeling of complex time series data during the COVID-19 pandemic. (2025-05-06, shares: 6) · https://www.ml-quant.com/papers/repec/taf-tjorxx-v-76-y-2025-i-1-p-97-110/
- __[Machine Learning for Market Risk Management](https://econpapers.repec.org/scripts/redir.pf?u=http%3A%2F%2Fwww.sciencedirect.com%2Fscience%2Farticle%2Fpii%2FS0305048324002135%3Bh%3Drepec%3Aeee%3Ajomega%3Av%3A133%3Ay%3A2025%3Ai%3Ac%3As0305048324002135)__: Two new deep learning frameworks enhance the estimation of Value at Risk and Expected Shortfall, improving risk management for financial institutions. (2025-04-20, shares: 6) · https://www.ml-quant.com/papers/repec/eee-jomega-v-133-y-2025-i-c-s0305048324002135/
- __[Divergence in Expectations and Risk Premiums](https://econpapers.repec.org/scripts/redir.pf?u=http%3A%2F%2Fwww.sciencedirect.com%2Fscience%2Farticle%2Fpii%2FS0165176524006037%3Bh%3Drepec%3Aeee%3Aecolet%3Av%3A247%3Ay%3A2025%3Ai%3Ac%3As0165176524006037)__: Macroeconomic expectation disagreements significantly affect financial risk premia, especially in small-cap stocks and low profitability when consumption and productivity forecasts diverge. (2025-08-16, shares: 5) · https://www.ml-quant.com/papers/repec/eee-ecolet-v-247-y-2025-i-c-s0165176524006037/

## Papers with code

### Trending

- __[Flash Frontier: Sparse Agentic Intelligence](https://github.com/stepfun-ai/Step-3.5-Flash)__: Sparse Agentic Intelligence: Step 3.5 Flash is an AI model designed for advanced intelligence using efficient parameters and attention mechanisms. (2026-02-12, shares: 1238)
- __[InternAgent 1.5: Autonomous Discovery System](https://github.com/InternScience/InternAgent)__: Autonomous Discovery System: InternAgent1.5 is a system that integrates computational modeling with experimental research for autonomous scientific discovery. (2026-02-10, shares: 866)
- __[CodeWorld: GUI Agents for Visual States](https://github.com/AMAP-ML/Code2World)__: GUI Agents for Visual States: Code2World enables autonomous GUI agents to predict visual outcomes by generating renderable code, improving navigation. (2026-02-11, shares: 133)
- __[SkillRL: Evolving RL Agents](https://github.com/aiming-lab/SkillRL)__: Evolving RL Agents: SkillRL enhances large language models by enabling skill discovery and policy evolution while conserving computational resources. (2026-02-11, shares: 92)
- __[UniAudio 2.0: Unified Audio Model](https://github.com/yangdongchao/UniAudio2)__: Unified Audio Model: Researchers developed ReasoningCodec for improved audio processing and UniAudio 2.0, a strong model for various audio tasks using a large dataset. (2026-02-06, shares: 60)

### Rising

- __[WeakDriven Learning: Improving Agents with Weak Checkpoints](https://github.com/chenzehao82/Weak-Driven-Learning)__: Improving Agents with Weak Checkpoints: WMSS boosts large language models by using weak checkpoints to close learning gaps for better results. (2026-02-10, shares: 39)
- __[Agent World Model: Advancing RL in Synthetic Environments](https://github.com/Snowflake-Labs/agent-world-model)__: Advancing RL in Synthetic Environments: Large language models in synthetic settings exceed traditional models in adapting to new situations. (2026-02-11, shares: 26)
- __[ROCKET: Model Compression via Knapsack Optimization](https://github.com/mts-ai/ROCKET)__: Model Compression via Knapsack Optimization: ROCKET introduces an efficient model compression technique that treats the process like solving a knapsack problem. (2026-02-12, shares: 20)
- __[Prism: Enhanced Block-Sparse Attention for LLMs](https://github.com/xinghaow99/prism)__: Enhanced Block-Sparse Attention for LLMs: Prism enhances long-context LLM performance by optimizing which blocks to select in blocksparse attention. (2026-02-11, shares: 19)
- __[LOCAbench: Benchmarking Language Agents in Extreme Contexts](https://github.com/hkust-nlp/LOCA-bench)__: Benchmarking Language Agents in Extreme Contexts: LOCAbench is a benchmark designed to evaluate language agents handling long-context tasks. (2026-02-10, shares: 17)

## GitHub

### Finance

- __[Prediction Market Framework](https://github.com/Jon-Becker/prediction-market-analysis)__: A new framework gathers and analyzes data from prediction markets, featuring extensive datasets from Polymarket and Kalshi. (2025-11-22, shares: 693)
- __[TradingView Asset Screener](https://github.com/deepentropy/tvscreener)__: The TradingView Screener API offers comprehensive access to various financial data including stocks, crypto, forex, bonds, and futures. (2023-08-02, shares: 718)
- __[AKQuant Trading Framework](https://github.com/akfamily/akquant)__: AKQuant is an open-source research and trading framework built with Rust and Python for high performance. (2026-01-30, shares: 76)
- __[AIPowered Bloomberg Terminal](https://github.com/feremabraz/bloomberg-terminal)__: An AI-driven terminal, akin to Bloomberg, uses Redis and AlphaVantage data for efficient simulations while minimizing API calls. (2025-05-06, shares: 688)
- __[Curated Stock Trading Resources](https://github.com/shi-rudo/awesome-stock-trading)__: A curated resource collection for stock traders, including essential tools, websites, and books. (2023-04-11, shares: 436)

### Trending

- __[Deep Learning Skills](https://github.com/https-deeplearning-ai/sc-agent-skills-files)__: A new AI assistant prioritizes user privacy by working silently without drawing attention during meetings and conversations. (2026-01-27, shares: 389)
- __[Local GPT](https://github.com/localgpt-app/localgpt)__: A smart LLM router reduces costs by overseeing different AI models and enabling micropayments for efficient use. (2026-02-01, shares: 576)

## Podcasts

### Quantitative

- __[Position Sizing in Volatility](http://localhost:8888/TopTradersUnplugged/ttu-2021/homepage/si386-liquidity-is-not-what-you-think-ft-rob-carver)__: Rob Carver emphasizes the importance of risk management and disciplined investment strategies in navigating current commodity market volatility. (2026-02-07, shares: 10)
- __[Bonds as Risky Hedges](http://localhost:8888/TopTradersUnplugged/ttu-2021/homepage/gm96-the-end-of-the-hedge-when-bonds-stop-protecting-portfolios)__: Ian Harnett examines the transition from disinflation to persistent inflation and its potential impact on the economy and the dollar before the midterms. (2026-02-11, shares: 8)
- __Biotech Boom Trends__: Dan Rasmussen and D.A. Wallach analyze the rise in biotech, China's market trends, and how technology influences productivity and valuations globally. (2026-02-09, shares: 6)
- __Biotech Surge Insights__: A repeat discussion with Dan Rasmussen and D.A. Wallach covers the biotech boom, the growth of China's market, and valuation methods, including U.S. and Japanese stock insights. (2026-02-06, shares: 6)
- __[Return Stacking in Portfolios](https://pdcn.co/e/www.buzzsprout.com/2034153/episodes/18665103-leverage-without-speculation-david-dziekanski-on-return-stacking-income-etfs-and-portfolio-risk.mp3)__: David Dziekanski discusses how return stacking can turn leverage into a sustainable investment strategy in an interview by Quantify Funds. (2026-02-11, shares: 6)

### Related

- __[Ted Oakley on Inflation and Fed Failures](https://pdcn.co/e/www.buzzsprout.com/2034153/episodes/18665105-trust-is-gone-ted-oakley-on-inflation-fed-failure-and-why-energy-looks-undervalued.mp3)__: Ted Oakley talks about managing investment risks during inflation by separating base and investment capital in unpredictable markets. (2026-02-11, shares: 5)
- __[Joe Davis: Vanguard's Economic Insights](https://cfasocietyorlando.libsyn.com/joe-davisvanguard-an-economist-crossing-the-t)__: Vanguard's Economic Insights: Joe Davis highlights Vanguard's rich history, its strong research team, and how AI may influence investment strategies and market trends. (2026-02-06, shares: 5)
- __[Metal Mania: Gold vs. Silver](https://atanyrate.podbean.com/e/global-commodities-deconstructing-the-metal-mania/)__: Gold vs. Silver: Natasha Kaneva and Greg Shearer examine the recent fluctuations in gold and silver markets, noting their unique functions in investment portfolios. (2026-02-06, shares: 4)
- __[Commodities: Navigating Energy Risks](https://pdcn.co/e/www.buzzsprout.com/2034153/episodes/18658588-commodities-are-back-john-love-on-energy-shocks-precious-metals-and-the-new-risk-premium.mp3)__: Navigating Energy Risks: John Love discusses how geopolitical factors and supply changes are influencing commodities, urging a focus on specific exposures instead of broad market indexes. (2026-02-11, shares: 4)
- __[Sean McGould on Multi-Strategy Investing](https://macrohive.libsyn.com/ep-344-sean-mcgould-on-multi-strategy-investing-trump-20-and-the-ai-digital-tool-era)__: Sean McGould explores a multi-strategy investment approach, addressing the effects of macroeconomic trends, including AI and market volatility. (2026-02-06, shares: 4)

## Blogs

### Quantitative

- __[The Risks of Options](https://stockviz.substack.com/p/thanksgiving-turkey)__: An options-selling strategy suffered major losses from volatility linked to the Indian budget and a US-India trade deal, erasing months of gains. (2026-02-07, shares: 4)
- __[Options Strategy Setback](https://stockviz.substack.com/p/thanksgiving-turkey)__: After ten months, a delta-hedged short strangle system ended up at breakeven due to small profits being outweighed by a large loss. (2026-02-07, shares: 4)
- __[Volatility Destroys Gains](https://stockviz.substack.com/p/thanksgiving-turkey)__: Brokers and exchanges thrived during market volatility, highlighting the risks of depending on options-selling for steady income. (2026-02-07, shares: 4)
- __[Delta-Hedged Short Strangle Warning](https://stockviz.substack.com/p/thanksgiving-turkey)__: The Thanksgiving Turkey chart demonstrates black swan events in trading, showing how unpredictable market outcomes can be. (2026-02-07, shares: 4)
- __[Broker Profits Despite Losses](https://stockviz.substack.com/p/thanksgiving-turkey)__: The article discusses the reality of options trading, where strategies can backfire and lead to significant losses in volatile markets. (2026-02-07, shares: 4)

### Related

- __[Blackswan Trading Tips](https://stockviz.substack.com/p/thanksgiving-turkey)__: A delta-hedged short strangle strategy made profits for six months before losing significantly due to market volatility. (2026-02-07, shares: 4)
- __[Options Risk Strategies](https://stockviz.substack.com/p/thanksgiving-turkey)__: Small, steady gains were erased by a major loss, leaving the strategy just breaking even after ten months. (2026-02-07, shares: 4)
- __[Volatility Erases Profits](https://stockviz.substack.com/p/thanksgiving-turkey)__: The article emphasizes the risks of selling options for income, noting that unexpected events can greatly affect results. (2026-02-07, shares: 4)
- __[Short Strangle Review](https://stockviz.substack.com/p/thanksgiving-turkey)__: A profit and loss chart shows a trend of minor losses followed by a large setback in trading performance. (2026-02-07, shares: 4)
- __[Brokers Gain from Turmoil](https://stockviz.substack.com/p/thanksgiving-turkey)__: Overall, brokers, exchanges, and the government seem to gain more from these trading strategies than the individual traders. (2026-02-07, shares: 4)

## X / Twitter

### Miscellaneous

- __[Reclaiming Architectural Sovereignty](https://x.com/carlcarrie/status/2020233440139108512)__: The article explains that as AI technology advances, the emphasis in software development is moving from quick coding to creating customized software designs tailored to individual needs. (2026-02-07, shares: 0)

## Reddit

### Quantitative

- __[Tower Insights](https://www.reddit.com/r/quant/comments/1qz54og/tower_research/)__:  (2026-02-08, shares: 53)

### Rising

- __[Knowledge vs. Memory](https://www.reddit.com/r/quant/comments/1qy0y2g/so_much_knowledge_so_little_memory/)__:  (2026-02-07, shares: 48)