I've been working on a slightly similar method and it produces pretty decent results. My only problem is when do I do the comparisons? If I do it when I want a similarity I have to compare against every single set in my database every time, which seems a little suboptimal. But if I compute it when I add a new item then only the newly added items will be similar to the older items, the old items won't be similar to the new items.
My dataset isn't giant though, I'll probably have somewhere between 5k-15k sets and adding 100-200 a day. Maybe I'm over optimizing.
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