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a quant who started as a technical trader explained what changed everything for him he stopped trying to predict where price goes he started measuring the probability of each market state and betting only when the math was asymmetric that shift took him from drawing trendlines to writing models...

112,271 次观看 • 1 个月前 •via X (Twitter)

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a quant at a prop firm showed me a 5x5 grid on a napkin said: > this is our entire edge. we don't predict price. we predict which box the market is in and where that box historically leads i didn't understand it for weeks. then it clicked never looked at a chart the same way since grid is called a Markov Chain transition matrix. the math is from 1906, it's in every probability textbook on earth and hedge funds use it because it asks a completely different question than retail traders ever ask retail: will this go up or down quant: what state is this market in, and where does this state typically go every market lives in one of maybe 5-6 states at any given moment tight range, volatility compression, trending with momentum, post-spike reversal, pre-breakout coil not random labels - clusters you identify from actual data using volatility, volume, and momentum readings stacked together once you have the states, you build the matrix: P(state 2 -> state 4) = 73% P(state 4 -> state 1) = 61% P(state 1 -> state 3) = 68% each cell is a historical probability. now when the market is in state 2, you're not guessing you're betting on 73% historical completion. you size it with Kelly. you take the trade when the math says to, not when it feels right i built this on BTC using 2 years of 4-hour data. identified 5 states one i labeled "volatility compression below 20-day mean for 6+ consecutive candles" transitioned to a directional move above 1.8 ATR in 71% of cases average reward/risk on those trades: 5.4 that's not prediction. that's reading a probability table the market keeps filling in for you every single day the part that should bother you: the data to build this is free. the framework is in any quant textbook python to implement it is maybe 200 lines what Renaissance Technologies has that you don't isn't secret data or proprietary signals it's this framework applied to higher-resolution data with more sophisticated state definitions you're not missing information you're asking the wrong question every single time you open a chart

Livsun

188,258 次观看 • 2 个月前

In 1988, Jim Simons flew to Berkeley to beg a math professor to fix his hedge fund. The professor had never traded a stock. He had spent his career on coding theory and mathematical board games. He agreed to help on the condition he could leave when he wanted. He delivered 55 percent net in his full year running it. Then he handed the whole thing back and went home to teach undergraduates. His name was Elwyn Berlekamp. He is one of two people who ever ran what would become the most profitable trading operation in history. Simons was the other one. MIT math PhD, 1964. Berlekamp wrote foundational papers in coding theory that still run every CD, DVD, satellite link, and QR code on Earth. The Berlekamp-Massey algorithm, published 1968, is why every scratched CD you owned still played through to the end. He also co-wrote "Winning Ways for Your Mathematical Plays" with John Conway and Richard Guy. Four volumes. It became the foundational text of combinatorial game theory. Berlekamp thought about board games the way most mathematicians think about theorems. He proved endgame results in Go that professional masters had assumed were unprovable. His 1994 book "Mathematical Go" reduced the last moves of a Go game to a formula. Top-ranked professionals started studying it. Simons had a problem in the late 1980s. His trading partnership was falling apart. The fund was losing money. He flew west to see the game theorist. Berlekamp bought a controlling stake, cut what was not working, and rebuilt the trading logic from combinatorial game theory principles. The fund returned 55 percent net after fees in his full year running it. In December 1990, Berlekamp sold his stake back to Simons and walked out. He wanted to go back to Berkeley. In interviews he said the same thing many times, in different words: Berkeley was where he belonged. Simons kept building on the system Berlekamp rebuilt. It became the Medallion Fund. Over the next 30 years, Medallion compounded at roughly 66 percent gross per year. It is the most profitable trading strategy in the history of finance. Berlekamp took his cut in 1990 and never went back. He spent the rest of his life at UC Berkeley. He gave a lecture called "Mathematics and Go" that is on YouTube. He died in 2019, aged 78. The paradox is not that Berlekamp made a fortune. It is that he had the door to the biggest fortune in trading history held open for him and walked out. The math was fun. The billions were not.

veles

68,732 次观看 • 16 天前

a prop trader from chicago made $847k in 180 days just by asking one question every single morning that 99% of traders never ask he didn't build a new model didn't touch machine learning just opened excel and spent 8 minutes on one calculationthe question: what state is the market in right now, and where does it statistically go next most traders ask "will this go up or down". that's 50/50 he started asking "is the market trending, ranging, or reversing" and then looked at the historical probability of each transitionturns out markets don't flip randomly they cycle through states. each state has a fixed probability of shifting to the next onehe built a 5x5 grid on a napkin: trending up -> 68% stays trending, 21% flips to range, 11% reverses ranging -> 54% stays range, 28% breaks up, 18% breaks down trending down -> 61% stays falling, 24% to range, 15% reverses he didn't predict direction he just calculated which state had the highest expected value and sized the position with kelly criterion that's the entire edgethe framework is from 1906 - andrei markov. free in every probability textbook on earthrenaissance technologies has been running this since 1988 37 years of 66% annual returnsdata costs nothing - yahoo finance, federal reserve, any broker implementation is 200 lines of python what separates him from the retail traders losing money isn't intelligence or capital or luck it's that he was willing to think differently about the same data everyone else sees every single day they kept you staring at candles while the people who got it were reading transition matrices bookmark this - you're either asking the wrong question or you're not asking it at all

Livsun

41,634 次观看 • 1 个月前

a trader in Shanghai has been running 71% annual returns since 2019 without ever touching a Western exchange nobody outside Weibo knows his name he doesn't manage outside capital, never went on a podcast, never posted a P&L screenshot pause at 0:34 - look at the monitor behind him on the right that's not a price chart. that's a 6x6 state transition matrix built from 11 years of Chinese A-share data he found something in 2018 that every quant textbook describes but almost nobody applies CSI 300 price-state transitions are predictable at a level that makes S&P pattern noise look clean by comparison he mapped 6 market states: trending-up, trending-down, range-tight, range-wide, vol-compression, spike-decay then calculated every historical transition probability across 11 years of 30-minute bars: trending-up -> stays trending: 63% vol-compression -> spike-decay: 78% range-tight -> breaks directional: 71% now he's not predicting direction. he's entering when math says 71% historical completion, sizing with Kelly, closing in under 30 minutes 28 min avg hold, worst month -3.1%, best year +94% framework is markov's from 1906. A-share data is free on WIND Terminal implementation: roughly 180 lines of python insight was never about math - it was about where to aim it Chinese A-shares have thinner institutional algo penetration than US equities. patterns don't get arbed out as fast statistical edges persist for months longer than they would on SPY retail in Shanghai trades on gut. US quants are chasing S&P microstructure nobody was running transition matrices on Chinese state sequences at any real scale he aimed a 119-year-old framework at a market nobody was watching and held the edge for 6 years bookmark this before it becomes obvious math is free, data costs nothing what took time was realizing the most exploitable market wasn't the most-watched one they kept you watching SPY candles while the cleanest probability table on earth sat untouched in Shanghai

Livsun

25,048 次观看 • 1 个月前

The man who invented modern fantasy didn't publish his first novel until he was forty-five. By that age, J.R.R. Tolkien had already built a respectable life. He was an Oxford professor, an expert in ancient languages, with a wife and four children and a settled academic career. He was exactly the kind of man who might reasonably have decided that the shape of his life was already fixed. The work he would be remembered for, he had not yet even begun... The story, which Tolkien told himself, is that one summer he was grading examination papers, when he turned a page and found that a student had left it blank. Without quite knowing why, he wrote a single sentence on it: "In a hole in the ground there lived a hobbit." He did not know what a hobbit was. He had spent years inventing languages and mythologies as a private passion, and telling stories to his own children, never imagining any of it would reach the world. But that one line began to grow. It became a story, and then a book, and in 1937, at the age of forty-five, Tolkien published The Hobbit. It was a success, and his publisher asked for a sequel. Tolkien warned them it might take some time. It took 17 years... He wrote it in the margins of a demanding full-time job, revising endlessly, doubting it often. When The Lord of the Rings was finally published, in 1954 and 1955, he was in his early sixties. That book, begun as a middle-aged professor's private side project, went on to sell well over a hundred million copies, to invent modern fantasy as we know it, and to reshape the imagination of the entire world. Tolkien already had a full and respectable life behind him. And still, the thing he is remembered for, the thing that outlived him and reached hundreds of millions of people, was something he began at forty-five, at an age when it would have been the easiest thing in the world to tell himself he had already missed his chance. He didn't. It's never as late as it feels.

James Lucas

93,424 次观看 • 1 个月前

Kevin O'Leary reveals the cruelest sentence of his life was the one that saved it. Kevin O'Leary said he has always wanted to be a photographer. He was already working as a cameraman, ready to bet his life on a lens. His stepfather sat him down and said: "I'm sorry, but you're just not good enough. You don't have what it takes to survive against the level of quality that's out there." Kevin calls it the harshest sentence anyone ever delivered to him. He also calls it the most important one. He went back to school. Got a business degree. Started a production company called Special Event Television out of spite — but he didn't put himself behind the camera. He hired a real cameraman. He learned to edit. He sold the company. That was his first deal. The thing he took from that day became his operating system: knowing what you're bad at matters more than knowing what you're good at. Logistics bore him, so he gives up equity to anyone who can do it. He stays in marketing because that's the only seat where he compounds. Then he stopped pretending. The cruelest sentence of his life was the one that saved it. P.S. Pull the thread on any story like this and you'll find the hidden incentive at the other end. As Munger said: "Show me the incentive and I'll show you the outcome." So I wrote a short book on how to spot them and design your own. Comment "INCENTIVES" and I'll send you the details. If you're new here, follow GeniusThinking for content on the greatest minds in economics, psychology, and history. — Kevin O'Leary ( Kevin O'Leary aka Mr. Wonderful ), chairman of O'Leary Ventures and Shark Tank investor, on Graham Stephan's ( Graham Stephan ) and Jack Selby's ( Jack Selby ) Iced Coffee Hour podcast

GeniusThinking

25,562 次观看 • 2 个月前

How Jeffrey Epstein rose from maths nerd, to a financial fixer for elites, to the boss of blackmail: ‘If you look at Epstein’s operation, what it looks like to me is that it’s a criminal operation on a number of different levels. Epstein is an interesting case because where does he come from? Well, he doesn’t come from a wealthy family. He doesn’t come from an influential family. He was a Long Island kid who was good at mathematics…he was a kind of smart, nerdy kid who made friends by doing their math homework. You’re not popular because you’re a jock. You’re not popular necessarily because you’re that good-looking or you dance well. You’re popular because you can do other people’s math homework and get them to pass. His whole career is ingratiating himself to wealthy, powerful people. What did he do as a financial advisor? Look at it. Just stand back and look at what he did. And what he did was that he helped them dodge taxes. He also helped them hide money. He could help people discover money that had been hidden abroad. He could help them hide money. If you do one, you can do the other. And that’s how he moved as a kind of fixer and arranger into the realm of the rich and powerful. And in that process, either he or other people who were working with him found out that these people can be compromised in a number of ways. And so then you start installing cameras in your residences, in the bedrooms and the bathrooms. There’s only one reason you do that. It’s fairly simple. The only reason why you collect all of this video information on your rich and powerful friends is to potentially use it as leverage against them. You don’t have to actually use it. You simply have to make them aware that you have it and could use it.’ -Prof. Richard Spence on the latest episode of Going Underground FULL INTERVIEW:

Going Underground

68,766 次观看 • 7 个月前

Jonni Skinner is a heroic young man Jonni S🦎. If you are willing to understand what Gender Affirming "Care" actually entails from what it looks like in a gender clinic here in Michigan, please listen to his experience. He was naturally effeminate and gay as a boy where he was therefore not accepted by many around him. He sought answers for the traumas he was living through. At 13 years old, he was placed on a medicalized path at the University of Michigan to attempt to change him into a girl. The doctor contended that he was not gay, he was just a girl. He was diagnosed with "tall stature" because the doctor told him if he was too tall as a girl, he would not be able to find a mate. They therefore deliberately stunted his growth as if being tall was a disease. He was 5'7 at the time. Nine years later, he is 5'8. He was diagnosed with an endocrine disorder related puberty that he did not have to be placed on puberty blockers and cross sex hormones. The doctor used fraudulent coding more than 100 times in his medical records. He was prescribed "affirming gear" where they sent him to a sex shop across the state in Wyandotte. His doctors fearmongered him and his mother saying the phrase "would you like to have a dead son, or a living daughter". They threatened to take him from his mother if she refused their malicious pharmaceutical path. His doctor ignored the ailments related to the powerful drugs he was placed on and dismissed the sexual disfunction they were causing him by saying he could seek other means of "pleasure". The doctors ultimately ghosted him in 2021 by legitimately hanging up on him and never speaking with him again. His unique ailments related to this "care" have him being turned away from doctors today. He deserves justice and actual care. We hope to aid him in that endeavor.

Brad Paquette

110,000 次观看 • 10 个月前