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Here's how top quantitative trading firms actually find edge: Scott Phillips — runs Hypertrend, $20M crypto quant fund — explains: "The platonic ideal of a trading system is what Jane Street would do. Anyone who knows what they're doing takes a bunch of signals." "You don't want to build... a system like: when it's Monday and the S&P is above the 200 SMA and stocks have been down five days in a row. That's fragile. That's curve fitting." "You want a bunch of independent predictors." "An EMA of market buys divided by an EMA of market sells. Positive, you go long. Negative, you go short. That's the building block of momentum." "The better your execution, the more edges open up." "Aggression features are well known. They're Sharpe 2.5 in crypto."show more

Ethan Kho

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64,286 views • 4 months ago •via X (Twitter)

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You can pump a $50M coin to $1B with $1.5M of real buying. Scott Phillips (Scott Phillips, O.G.) on how new token listings actually work: "There's a huge industry of market makers operating out of Dubai. Their business model is: we're gonna pump your coin, and we want 30% of the profit when we dump it on exit liquidity day." "They run the ball up. Buy, sell, buy. Create momentum ignition. Retail finally buys in the middle of a bull run — and then it dumps." "Buying 20-day highs works best on the top decile. By the fourth decile, you get negative momentum effects." "Anything in the bottom 20% of market cap on Binance perps that makes a 20-day high — short it. That is a very strong edge." "The market maker contract runs 90 days. It's priced as a call option on the 7-day VWAP after launch." "Once the strike kicks in, delta hedging from market makers drives these coins down." "Wait 7 days. Short it for 90 days. I kid you not." "That's not an edge big enough for institutional. That's an edge for retail guys with a small account."

You can pump a $50M coin to $1B with $1.5M of real buying. Scott Phillips (Scott Phillips, O.G.) on how new token listings actually work: "There's a huge industry of market makers operating out of Dubai. Their business model is: we're gonna pump your coin, and we want 30% of the profit when we dump it on exit liquidity day." "They run the ball up. Buy, sell, buy. Create momentum ignition. Retail finally buys in the middle of a bull run — and then it dumps." "Buying 20-day highs works best on the top decile. By the fourth decile, you get negative momentum effects." "Anything in the bottom 20% of market cap on Binance perps that makes a 20-day high — short it. That is a very strong edge." "The market maker contract runs 90 days. It's priced as a call option on the 7-day VWAP after launch." "Once the strike kicks in, delta hedging from market makers drives these coins down." "Wait 7 days. Short it for 90 days. I kid you not." "That's not an edge big enough for institutional. That's an edge for retail guys with a small account."

Ethan Kho

865,782 views • 4 months ago

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

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

Ethan Kho

214,514 views • 6 months ago

The CIO of a crypto fund on what crypto actually added to trading: Tom Costello explains: "Crypto is a bunch of super, super, super smart guys cosplaying at finance." "It was built for retail. It wasn't built for institutions." "The easiest money in finance is taking money from retail. That's where you have the biggest information advantage — they don't really know what's going on." "If you know even a little about what's really going on, it's easy to find somebody who's wrong. That's most of the crypto space." "There are a lot of great, innovative ideas in crypto. A lot will produce real efficiency. But it's not going to be in trading." "No new trading ideas in there. None that won't end up with somebody in prison."

The CIO of a crypto fund on what crypto actually added to trading: Tom Costello explains: "Crypto is a bunch of super, super, super smart guys cosplaying at finance." "It was built for retail. It wasn't built for institutions." "The easiest money in finance is taking money from retail. That's where you have the biggest information advantage — they don't really know what's going on." "If you know even a little about what's really going on, it's easy to find somebody who's wrong. That's most of the crypto space." "There are a lot of great, innovative ideas in crypto. A lot will produce real efficiency. But it's not going to be in trading." "No new trading ideas in there. None that won't end up with somebody in prison."

Ethan Kho

36,835 views • 3 months ago

I Actually Want the Crypto Market to Crash, Here’s Why Everyone is praying for crypto to pump. I'm hoping for the exact opposite, and here's why. People are waiting for the CLARITY Act to pass and the Fed to cut rates so crypto explodes. I want it delayed. Keep the market down a little longer. Here's why that sounds crazy but isn't. When the market is down is exactly when you get to accumulate at cheap prices. You don't walk into a store hoping the price is high. If you want a quality product, you want it cheap. Assets are no different. But in investing people flip it. They want their bags expensive while they're still trying to buy more. That's trading with your emotions, way too attached to your portfolio. If you truly believed in your investments, you'd want what I want: more money into cheaper assets. That's how this actually works, not the other way around. Flip your perspective and you make money. Stay emotional, blame everyone else, and you stay exactly where you are. Follow for more.

I Actually Want the Crypto Market to Crash, Here’s Why Everyone is praying for crypto to pump. I'm hoping for the exact opposite, and here's why. People are waiting for the CLARITY Act to pass and the Fed to cut rates so crypto explodes. I want it delayed. Keep the market down a little longer. Here's why that sounds crazy but isn't. When the market is down is exactly when you get to accumulate at cheap prices. You don't walk into a store hoping the price is high. If you want a quality product, you want it cheap. Assets are no different. But in investing people flip it. They want their bags expensive while they're still trying to buy more. That's trading with your emotions, way too attached to your portfolio. If you truly believed in your investments, you'd want what I want: more money into cheaper assets. That's how this actually works, not the other way around. Flip your perspective and you make money. Stay emotional, blame everyone else, and you stay exactly where you are. Follow for more.

Alexander Lorenzo

13,602 views • 2 months ago

Qullamaggie on Great Times to See What Stocks Hold Up “This is a great time to find the strongest stocks — the ones that are not affected by the overall market. So if you have a market pullback and you have a bunch of stocks that are not going down, guess what they will do when the market stops going down. And even starts going higher. Those stocks will fly.”

Qullamaggie on Great Times to See What Stocks Hold Up “This is a great time to find the strongest stocks — the ones that are not affected by the overall market. So if you have a market pullback and you have a bunch of stocks that are not going down, guess what they will do when the market stops going down. And even starts going higher. Those stocks will fly.”

Lone

10,563 views • 1 month ago

"If you're not getting a Sharpe of 2 in crypto, you're not very good." Scott Phillips (Temu Robot James) runs HyperTrend, a mid-frequency crypto fund trading $20M of his own capital. Scott on why the edge still exists: "There's no second-best counterparties than crypto." "Crypto is riskier than stocks. Bitcoin has regular 80% drawdowns. Most people aren't willing to put up with that. Most people aren't stupid like me." "Quant finance is a known thing. You're not reinventing the wheel. You do exactly the same thing as everyone does." "At small scales, you can realistically achieve Sharpe ratios above 3." "A retail Joe Schmo, no automation, can realistically target Sharpe 1.5 in crypto." "I can give you rule sets a 5-year-old could execute." "Top 20 cryptos. Hold anything within 5 days of a 20-day high. Equal weighted, no portfolio magic. Sharpe 1.3 through bull and bear markets." "Carry works about Sharpe 1.6. Momentum 1.4 to 1.7. Trend 1.3 to 1.4. Throw them together equal-weighted — Sharpe 2 on daily execution." "You could execute it from a spreadsheet."

"If you're not getting a Sharpe of 2 in crypto, you're not very good." Scott Phillips (Temu Robot James) runs HyperTrend, a mid-frequency crypto fund trading $20M of his own capital. Scott on why the edge still exists: "There's no second-best counterparties than crypto." "Crypto is riskier than stocks. Bitcoin has regular 80% drawdowns. Most people aren't willing to put up with that. Most people aren't stupid like me." "Quant finance is a known thing. You're not reinventing the wheel. You do exactly the same thing as everyone does." "At small scales, you can realistically achieve Sharpe ratios above 3." "A retail Joe Schmo, no automation, can realistically target Sharpe 1.5 in crypto." "I can give you rule sets a 5-year-old could execute." "Top 20 cryptos. Hold anything within 5 days of a 20-day high. Equal weighted, no portfolio magic. Sharpe 1.3 through bull and bear markets." "Carry works about Sharpe 1.6. Momentum 1.4 to 1.7. Trend 1.3 to 1.4. Throw them together equal-weighted — Sharpe 2 on daily execution." "You could execute it from a spreadsheet."

Ethan Kho

113,593 views • 4 months ago

This will change how you see the stock market. Serial investor JL Collins explains stock market investment using the beer analogy: "When most people look at investment news, it's all this churning and trading; what stocks are hot right now, what stocks are falling. That's not the simple path to wealth; that's the foam." "The value of a stock is a combination of two things: the beer and the foam." "The beer is the fundamental operating value of the company; the sales, expenses, and profits while the foam is what the market determines the stock is worth based on emotions and speculation."

This will change how you see the stock market. Serial investor JL Collins explains stock market investment using the beer analogy: "When most people look at investment news, it's all this churning and trading; what stocks are hot right now, what stocks are falling. That's not the simple path to wealth; that's the foam." "The value of a stock is a combination of two things: the beer and the foam." "The beer is the fundamental operating value of the company; the sales, expenses, and profits while the foam is what the market determines the stock is worth based on emotions and speculation."

Fibonacci 🥷

43,392 views • 4 months ago

the memecoin market was one of the greatest opportunities that we ever saw within crypto some people were making millions of dollars overnight at the peak but it's not what it used to be, and things have changed here is what caused the memecoin market to change into what it is now if you want to be a part of a community that knows what they're doing in crypto, join Kanto Labs

the memecoin market was one of the greatest opportunities that we ever saw within crypto some people were making millions of dollars overnight at the peak but it's not what it used to be, and things have changed here is what caused the memecoin market to change into what it is now if you want to be a part of a community that knows what they're doing in crypto, join Kanto Labs

AshRobin 🐶

17,478 views • 5 months ago

Qullamaggie on Putting in Work on the Weekends Is the Only Way You Will Make It In Trading “Don't forget to put in a lot of work during the weekend. That's the only way you're going to make it. It's during the weekends. That's where your edge is honed. It's not watching trading choppy markets. That's not where you get an edge. You get an edge by sitting there and doing things most people are not willing to do. That's where edge comes from. Okay, guys. Good luck. See ya.”

Qullamaggie on Putting in Work on the Weekends Is the Only Way You Will Make It In Trading “Don't forget to put in a lot of work during the weekend. That's the only way you're going to make it. It's during the weekends. That's where your edge is honed. It's not watching trading choppy markets. That's not where you get an edge. You get an edge by sitting there and doing things most people are not willing to do. That's where edge comes from. Okay, guys. Good luck. See ya.”

Lone

15,114 views • 7 months ago

Trump: "We have to get a mindset that when the country is doing well, you don't want to kill the growth. That's what they're doing. They kill the growth because they're so afraid of inflation. But you can have tremendous growth without inflation. Everything goes up with the growth. But that's not inflation."

Trump: "We have to get a mindset that when the country is doing well, you don't want to kill the growth. That's what they're doing. They kill the growth because they're so afraid of inflation. But you can have tremendous growth without inflation. Everything goes up with the growth. But that's not inflation."

Aaron Rupar

49,373 views • 8 months ago

A quant fund that's returned 20% a year for 20 years claims it has no informational edge. It doesn't know anything the market doesn't. The CEO on what the edge actually is: Suhaimi Zainul-Abidin, CEO of Quantedge, explains: "There are two ways you can invest well. You can have skill in the bet you make, or you can have more bets, even if you don't have as good skill." "There's such a thing as an information ratio: the skill of the bet times the square root of the number of independent bets you take." "We certainly don't have all the information. I don't think we know things above and beyond everybody else. And we can't predict the markets." "What we can do is operate one of the most diversified portfolios in the world. Close to 300 distinct markets. Forty to fifty in equities. Fifty different commodity types." "That diversification means your idiosyncratic risk goes down tremendously. And if portfolio risk drops, you can make a decision: do I want to ramp the risk back up? That's exactly what we do." "If you run a concentrated book at high levels of risk, you're asking for trouble. We run high risk, yet a level that ensures there's no risk of ruin." "20% annualized for 10 years, well done. For 20, that's what we've done. But we're going to do it for 50." Many in the industry bid up the skill term. Asia's top quant fund spent 20 years compounding the term underneath the square root.

A quant fund that's returned 20% a year for 20 years claims it has no informational edge. It doesn't know anything the market doesn't. The CEO on what the edge actually is: Suhaimi Zainul-Abidin, CEO of Quantedge, explains: "There are two ways you can invest well. You can have skill in the bet you make, or you can have more bets, even if you don't have as good skill." "There's such a thing as an information ratio: the skill of the bet times the square root of the number of independent bets you take." "We certainly don't have all the information. I don't think we know things above and beyond everybody else. And we can't predict the markets." "What we can do is operate one of the most diversified portfolios in the world. Close to 300 distinct markets. Forty to fifty in equities. Fifty different commodity types." "That diversification means your idiosyncratic risk goes down tremendously. And if portfolio risk drops, you can make a decision: do I want to ramp the risk back up? That's exactly what we do." "If you run a concentrated book at high levels of risk, you're asking for trouble. We run high risk, yet a level that ensures there's no risk of ruin." "20% annualized for 10 years, well done. For 20, that's what we've done. But we're going to do it for 50." Many in the industry bid up the skill term. Asia's top quant fund spent 20 years compounding the term underneath the square root.

Ethan Kho

71,354 views • 1 month ago

Qullamaggie on The Importance of a Good Market "This is what I'm talking about. You know, you wait for these periods when the ten days start sloping up—the ten and twenty days start sloping up—and the ten gets above the twenty. Like you know, that's when the money is made, and the rest of the time you just wait; wait, wait, or do very little. You get a few of those periods per year, and you’re probably gonna outperform most of these day traders percentage-wise. You know, it's a much more scalable way of trading; you can scale your accounts much faster."

Qullamaggie on The Importance of a Good Market "This is what I'm talking about. You know, you wait for these periods when the ten days start sloping up—the ten and twenty days start sloping up—and the ten gets above the twenty. Like you know, that's when the money is made, and the rest of the time you just wait; wait, wait, or do very little. You get a few of those periods per year, and you’re probably gonna outperform most of these day traders percentage-wise. You know, it's a much more scalable way of trading; you can scale your accounts much faster."

Lone

18,030 views • 6 months ago

This is: U.S. House Rep Tim Burchett: FACT: Democrat don’t want the SAVE Act because they have ‘large populations of illegals voting.’ Tim Burchett “When you register to vote, you have to prove you're an American citizen. When you go vote, you have to show an ID. That's all it is. And the reason they don't want it is because they know they're, they got a population of illegals voting — It's everywhere — It's all over and they know it, and that's how they're stealing. Pass the SAVE America Act, ‘let’s take our country back.”

This is: U.S. House Rep Tim Burchett: FACT: Democrat don’t want the SAVE Act because they have ‘large populations of illegals voting.’ Tim Burchett “When you register to vote, you have to prove you're an American citizen. When you go vote, you have to show an ID. That's all it is. And the reason they don't want it is because they know they're, they got a population of illegals voting — It's everywhere — It's all over and they know it, and that's how they're stealing. Pass the SAVE America Act, ‘let’s take our country back.”

🇺🇸RealRobert🇺🇸

34,516 views • 6 months ago

🚨 Alan Shearer on Spurs signing of Tonali and Fernandes: 🗣️"Both of them went for the money ..Spurs don't know what they're doing. They have no football now in that building. "Tell me, what's that based on?" "They don't know what they're doing. Because they're paying a hundred million pound for Tonali, because they're paying eighty-five million pound for Fernandez. That's the market. "That's what you think the market is, because with respect to Tonali, why would you go from Newcastle to Tottenham Hotspur? I suspect it's because of the money. And I don't know what that tells you. That tells you that you've either got a player that's [for money] or for ambition going to a side in the league that's willing to spend money from a certain level buying players top, top players." "You're not getting Tonali because he wants to come to Spurs, you're getting Tonali because you're paying Newcastle a hundred million quid and this guy's gonna get three hundred grand a week." Vinai doesn't has a clue about football.. #thfc #spurs [talkSPORT]

🚨 Alan Shearer on Spurs signing of Tonali and Fernandes: 🗣️"Both of them went for the money ..Spurs don't know what they're doing. They have no football now in that building. "Tell me, what's that based on?" "They don't know what they're doing. Because they're paying a hundred million pound for Tonali, because they're paying eighty-five million pound for Fernandez. That's the market. "That's what you think the market is, because with respect to Tonali, why would you go from Newcastle to Tottenham Hotspur? I suspect it's because of the money. And I don't know what that tells you. That tells you that you've either got a player that's [for money] or for ambition going to a side in the league that's willing to spend money from a certain level buying players top, top players." "You're not getting Tonali because he wants to come to Spurs, you're getting Tonali because you're paying Newcastle a hundred million quid and this guy's gonna get three hundred grand a week." Vinai doesn't has a clue about football.. #thfc #spurs [talkSPORT]

MUFC Buzz™🥇

1,249,226 views • 2 months ago

The difference a lot of people don't realize is that when you're a celebrity, 50% of the population doesn't like you. That's just how it is. They don't like you. But when you're a politician, 50% of the constituency hates you and two and a half percent of them want to kill you. That's the difference. There's always that two and a half percent lunatic fringe no matter where you are. It's pretty scary and it's tough on your family and that's why I have so much respect for politicians.

The difference a lot of people don't realize is that when you're a celebrity, 50% of the population doesn't like you. That's just how it is. They don't like you. But when you're a politician, 50% of the constituency hates you and two and a half percent of them want to kill you. That's the difference. There's always that two and a half percent lunatic fringe no matter where you are. It's pretty scary and it's tough on your family and that's why I have so much respect for politicians.

Kevin O'Leary aka Mr. Wonderful

24,897 views • 7 months ago

Ansem gives advice on what to look for in the BEAR market "I would say that this current juncture in crypto where a lot of people have a negative perception of crypto, is usually when the best opportunities arise - and when you should be doing the most research, because it's just how how things work" "the smart people who are building these products, before the marketing of these products happened, and then once the marketing of these products happen is when the average person ends up finding out about them"

Ansem gives advice on what to look for in the BEAR market "I would say that this current juncture in crypto where a lot of people have a negative perception of crypto, is usually when the best opportunities arise - and when you should be doing the most research, because it's just how how things work" "the smart people who are building these products, before the marketing of these products happened, and then once the marketing of these products happen is when the average person ends up finding out about them"

banditxbt

49,624 views • 2 months ago

They ran Sharpe 11.7 on a crypto exchange. Capacity: $200K. Scott Phillips runs HyperTrend, a mid-frequency crypto fund trading $20M of their own capital. Scott on the hidden upside of sketchy venues: "Crypto is a sunny place for shady people. Retail traders with a pirate's heart should look for edge where counterparties are the stupidest in the world." "You're not going to find edge at the Bellagio." "There's a casino on the Myanmar-China border. Armed guards with AK-47s. Star Wars cantina energy. You might get shot for winning. But you might get away with card counting." "On Zhu Su's exchange, we had a click-trading Sharpe of 11.7. Man with a mouse and a spreadsheet." "Capacity was $200K. But it was glorious." "At a Token 49 booth last year, an exchange's main selling point was: we're headquartered in Minsk." "You can bet you'll find edge in places like that. If you're not doing Sharpe 5 or 7, you aren't even trying." "Small guy with under $100K can realistically run the ball up."

They ran Sharpe 11.7 on a crypto exchange. Capacity: $200K. Scott Phillips runs HyperTrend, a mid-frequency crypto fund trading $20M of their own capital. Scott on the hidden upside of sketchy venues: "Crypto is a sunny place for shady people. Retail traders with a pirate's heart should look for edge where counterparties are the stupidest in the world." "You're not going to find edge at the Bellagio." "There's a casino on the Myanmar-China border. Armed guards with AK-47s. Star Wars cantina energy. You might get shot for winning. But you might get away with card counting." "On Zhu Su's exchange, we had a click-trading Sharpe of 11.7. Man with a mouse and a spreadsheet." "Capacity was $200K. But it was glorious." "At a Token 49 booth last year, an exchange's main selling point was: we're headquartered in Minsk." "You can bet you'll find edge in places like that. If you're not doing Sharpe 5 or 7, you aren't even trying." "Small guy with under $100K can realistically run the ball up."

Ethan Kho

98,991 views • 4 months ago

"My 100% honest reaction to BvS and how it's received in the world is that it's really the question about - and I've said this quite a bit - do you really want a movie that's been had all the edges shaved off it by the focus groups? "Do you really want a movie that has been, like, decisions have been made in the boardroom or tested ideas are being rendered for your enjoyment? "Do you really want the Kmart version of your story? Is that what you really want?"

"My 100% honest reaction to BvS and how it's received in the world is that it's really the question about - and I've said this quite a bit - do you really want a movie that's been had all the edges shaved off it by the focus groups? "Do you really want a movie that has been, like, decisions have been made in the boardroom or tested ideas are being rendered for your enjoyment? "Do you really want the Kmart version of your story? Is that what you really want?"

Zack Snyder Film

10,889 views • 6 months ago

MIT defines an algorithm in one sentence that changes how you think about trading "a computational procedure that takes an input and produces an output through a well-defined sequence of steps" that's it. not AI. not machine learning. not a black box a set of rules that takes data in and spits a decision out every quant strategy ever built is just an algorithm Citadel's execution system that routes 40% of US equity volume is an algorithm Renaissance's Medallion Fund running millions of trades per year is an algorithm Jane Street's market making engine processing $26 trillion annually is an algorithm input: market data rules: mathematical conditions output: trade or no trade the difference between a quant desk and a retail trader is not the data it's that one side wrote down their rules precisely enough for a machine to execute them retail says "if RSI is low and the chart looks good, i'll probably buy" a quant desk says "if RSI 1.5, buy 0.3% of NAV" same logic. one is a feeling. the other is an algorithm the feeling can't be tested, can't be repeated, can't be measured the algorithm can be backtested across 10,000 trades and you know exactly when it works and when it doesn't > this lecture: MIT, free, 70 seconds > algorithmic trading volume: 60-75% of all US equity trades > Jane Street, Citadel, Two Sigma: every trade is algorithmically executed > tools to build your own: Python, free data, a laptop you don't need a faster computer or better data you need to write your strategy down precisely enough that a machine could run it without you that's the whole leap. from intuition to algorithm full breakdown in the video below

MIT defines an algorithm in one sentence that changes how you think about trading "a computational procedure that takes an input and produces an output through a well-defined sequence of steps" that's it. not AI. not machine learning. not a black box a set of rules that takes data in and spits a decision out every quant strategy ever built is just an algorithm Citadel's execution system that routes 40% of US equity volume is an algorithm Renaissance's Medallion Fund running millions of trades per year is an algorithm Jane Street's market making engine processing $26 trillion annually is an algorithm input: market data rules: mathematical conditions output: trade or no trade the difference between a quant desk and a retail trader is not the data it's that one side wrote down their rules precisely enough for a machine to execute them retail says "if RSI is low and the chart looks good, i'll probably buy" a quant desk says "if RSI 1.5, buy 0.3% of NAV" same logic. one is a feeling. the other is an algorithm the feeling can't be tested, can't be repeated, can't be measured the algorithm can be backtested across 10,000 trades and you know exactly when it works and when it doesn't > this lecture: MIT, free, 70 seconds > algorithmic trading volume: 60-75% of all US equity trades > Jane Street, Citadel, Two Sigma: every trade is algorithmically executed > tools to build your own: Python, free data, a laptop you don't need a faster computer or better data you need to write your strategy down precisely enough that a machine could run it without you that's the whole leap. from intuition to algorithm full breakdown in the video below

delost

23,905 views • 2 months ago

Threadguy reveals Andrew Kang told him "why are you trading?" and breaks down the 4 levels of trading "I just had Andrew Kang on and he responds to me and says why are you trading? There's mega trends that emerge every couple of years and they're the most profitable investments in the world every single time. You can compound massive amounts of wealth in a relatively small amount of time. Why are you trading?" "There's 4 levels. The worst is short term leverage trading just because you're bored. I'm in Zcash just because I'm in the mood to be in Zcash. That's the least profitable game where I make a bunch of money then give a bunch back. Second is short term but a real opportunity arises, like when Jensen said Marvell should be worth a trillion dollars. That's a good trade even though it's short term." "Third is high size spot where you see a real investment opportunity and hold it for 3-12 months. And fourth, the most economically viable, is finding an idea that's far out, believing in it, slamming it and holding it for 4 years. Like buying Robinhood at $12 because the world has changed, you see it, everybody else doesn't. That's a once a decade thing but you get fucking paid when it happens." "My goal is to eliminate level 1. I'm entering trades because I'm bored. That has got to go."

Threadguy reveals Andrew Kang told him "why are you trading?" and breaks down the 4 levels of trading "I just had Andrew Kang on and he responds to me and says why are you trading? There's mega trends that emerge every couple of years and they're the most profitable investments in the world every single time. You can compound massive amounts of wealth in a relatively small amount of time. Why are you trading?" "There's 4 levels. The worst is short term leverage trading just because you're bored. I'm in Zcash just because I'm in the mood to be in Zcash. That's the least profitable game where I make a bunch of money then give a bunch back. Second is short term but a real opportunity arises, like when Jensen said Marvell should be worth a trillion dollars. That's a good trade even though it's short term." "Third is high size spot where you see a real investment opportunity and hold it for 3-12 months. And fourth, the most economically viable, is finding an idea that's far out, believing in it, slamming it and holding it for 4 years. Like buying Robinhood at $12 because the world has changed, you see it, everybody else doesn't. That's a once a decade thing but you get fucking paid when it happens." "My goal is to eliminate level 1. I'm entering trades because I'm bored. That has got to go."

Kai

33,459 views • 3 months ago