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After studying 300 Leetcode Hards, solving every Jane Street puzzle from the Dwarkesh ads, and watching one Horace He lecture, he finally landed the $400k annualized Jane Street internship. Unfortunately, during onboarding his manager said “this diff is negative alpha,” so Jane Street deployed an AI model to translate...

137,241 Aufrufe • vor 2 Monaten •via X (Twitter)

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1. Who permitted a high-frequency algo trader like Jane Street to bring thousands of crores into India for investment? 2. Which authority allowed it to transfer profits amounting to tens of thousands of crores made illegally back to its country? 3. Did Jane Street have regulatory approvals and prior permission for its operations? Did the Finance Ministry, Stock Exchanges, or SEBI grant Jane Street permission? 4. Under whose oversight and approval did Jane Street carry out these activities over close to five years? 5. Isn’t it true that Jane Street transferred such a massive amount of money out of India that it disrupted FII numbers, and only then did the government and SEBI act—-and not to protect small investors? 6. How much money did Jane Street transfer abroad in these 4.5 years? 7. And why did it take SEBI five months after the mid Februaryreprimand (caution letter) to take action against Jane Street? 8. SEBI has now admitted that Jane Street manipulated Indian markets to the tune of thousands of crores — then what was SEBI doing as a regulator other than sleeping on the wheel? 9. Why were red flags deliberately ignored? If market experts were already talking about this manipulation by February 2024, what was SEBI and the Modi Govt waiting for - were they waiting for retail investors to be continuously duped? 10. ⁠When Jane Street itself admitted in a U.S. court in 2023 that it earned $1 billion from India’s derivatives market, why did it not raise red flags with SEBI? 11. What were other govt agencies like ED, CBI, Income Tax, SFIO doing all this while? 12. Did PM Modi and Home Minister Shah know about this and which is why they were predicting markets to rise during the election campaign? 13. Jane Street was repatriating large sums of money which it earned as profits, clear from the FII data, how much money did it pull out and why was nothing done to stop it? 14. Now that SEBI has had to admit that this money was illegal, what steps are being taken to recover from abroad the vast repatriated illegal profits made in Indian markets? 15. And through the entire manipulation and scam the one constant was Madhabi Puri Buch, first as a whole time director and then as the SEBI Chief - what does that tell you? 16. And why are PM and HM, the self appointed stock market gurus now quiet - when small investors have lost huge sums of money at the hands of a high frequency algo trader who was allowed to flourish and amass illegal profits?

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EDGE REVEALED: How an Ex-Jane Street Trader Finds Edge in Markets & Life Agustin Lebron Agustin Lebron (former Jane Street trader, author of The Laws of Trading, now working at an AI startup applying reinforcement learning to market execution) breaks down what edge really means — and how to find yours in trading, careers & life. “Edge is something that either you know or you can do that the marginal participant in that market either doesn’t or can’t.” We cover: - What edge actually means & how Jane Street builds organizational edge (their worst skill is still "pretty decent") - Why you can never truly know if you have edge — the statistical vs intuitive approaches - The consolidation of quant trading: from dozens of options firms to a handful of giants - The gamblification of everything — retail trading, sports betting & prediction markets fueling quant profits - What it was like having Sam Bankman-Fried (SBF) as a Jane Street intern: "Day one, I'm going to ask all the questions" - How to apply edge thinking to your own career: find what you're differentially good at - Raising teenagers in the AI age: why the traditional path still works, but other paths are opening up 00:00 Introduction 00:44 What is edge in financial markets 01:43 Jane Street and organizational structures for quant trading 03:46 Identifying and validating edge in trading 06:22 Navigating extreme market events and volatility 09:37 Future of quant trading and consolidation 12:15 Why quant firm profits have increased 14:42 The gamblization of everything 15:55 Who should pursue a career in quant trading 18:19 Applying the concept of edge to career and life decisions 20:56 Advice for interns to excel in quant trading 23:44 Predicting long-term success in trading interns 25:08 Sam Bankman-Fried as an intern and FTX reflections 28:15 Reasons people leave Jane Street and what they do next 31:19 Advice for young people in a changing world 36:09 Navigating job insecurity in tech-driven roles 38:55 Where to live if you want to be successful 40:28 Raising kids for a rapidly changing future 42:55 Questions young people should ask themselves 44:45 Outro and book recommendation

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