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nobody making $380k at a quant desk has any reason to write you a roadmap that's not cynicism - that's incentive structure wall street banks have PR teams pushing the "break into finance" pipeline. quant firms don't recruit that way, don't advertise, don't need to the filter has nothing...

20,826 görüntüleme • 1 ay önce •via X (Twitter)

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a citadel options trader told me the one concept they test first in every quant interview and it's been sitting on a free website for years not a hedge fund textbook, not a $3,000 prep program. a free course syllabus - options greeks, volatility, quizzes - publicly available, almost nobody applying has ever opened it concept is expected value across a probability distribution retail looks at a chart and asks which direction. quant looks at expected payout across every possible outcome and asks if that number beats the cost of the trade - completely different question options pricing is just EV made rigorous fair value of any position = sum of (each outcome's probability x its payoff), discounted back. that formula is in every intro stats course and every free options curriculum these firms post publicly citadel's first round isn't a stock pitch or a DCF it's a market-making problem: "set me a bid and ask on a coin flip" if you can solve that fast and size it correctly, you can price any derivative on earth prep is documented in 6 categories: probability, greeks, volatility, mental math, coding, microstructure firms don't want you pattern-matching to old trades. they want raw EV instinct - and that's in free courses that have been online for years entry-level quant traders at these firms start at $300k. senior traders clear $650k+ most people never make it past round 1. not because they weren't smart - because nobody told them what the test was actually measuring Bookmark this they kept you reading charts while they were drilling expected value at 2am

Livsun

25,988 görüntüleme • 2 ay önce

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 görüntüleme • 2 ay önce

Some millennials have been working for 20 years and are still confused by corporate 😂 For those who are still in the dark let me fill you in. Your performance doesn't matter. Your performance review doesn't matter. Your compensation has been set by a budget committee a year ago. You are not "overachieving" anything. Management has a fixed pool of money to pay the people they manage so they can give them raises less than inflation. If they give you more money, they have to give someone else less money. It's a zero-sum game. Managers actually have a larger pool of money to hire new employees because corporations recognize that new hires need to be incentivized to come over. They won't just leave their company for the same money. If you've been at the same company for 5 years you are underpaid. If you've been at the same company for 10 years you are paid less than a new hire at a competitor. Loyalty doesn't matter because there is no reason for a company to voluntarily pay you more money. Corporations already know that over 95% of employees will not go anywhere and will take whatever they get. Even if that's nothing. There's no reason to pay everybody more money when only a tiny percentage of workers will leave. Even if you leave... (remember over 95% of employees will not) ... the corporation will distribute the work you were doing among all your coworkers. And they will take on the extra work. And they will stay. For nothing. Because in addition to a salary, what an employee wants is to not have to look for a new job. That's all the want. They don't want to move anywhere. And companies know it, and they will take advantage of that. Now you know! You're welcome.

Lazy Canadian Investor

66,816 görüntüleme • 2 yıl önce

Every financial crisis of the last 25 years has been the same math mistake. A British mathematician explains it in 60 seconds using 100 bottles of beer. He has been trying to tell Wall Street for 30 years. Nobody has moved. You need 100 bottles of beer for a party. One bottle costs £1. What do you pay for 100? If you said £100, you just made the mistake that has crashed Wall Street four times since 1998. The real answer is: you have no idea. Depending on where you buy, it could be £80 for a bulk discount. Or £200 at the only shop still open. Almost never exactly £100. His name is Paul Wilmott. He is 66. Oxford math PhD. He wrote the textbook every serious quant reads. He founded the Certificate in Quantitative Finance program in 2003 and has trained thousands of the people now working at the biggest banks in the world. He said it out loud in a 2010 documentary. The film is called "Quants: The Alchemists of Wall Street." VPRO in the Netherlands made it. It runs 50 minutes. It is on YouTube. The industry ignored the film for 15 years and counting. The specific mistake Wilmott keeps warning about has a name. It is called linearity. Almost every financial model assumes doubling the input doubles the output. Twice the leverage, twice the return. Half the risk, half the loss. The real world does not work that way. The market really does not. Long-Term Capital Management figured this out in September 1998. Two Nobel Prize winners were on its board. Their model assumed correlations between markets would stay stable. In August, Russia defaulted. Correlations went to one. Every position moved against them at the same time. They lost $4.6 billion in six weeks. The Fed had to organize a bailout. The same failure has repeated every 8 to 10 years since. Subprime CDOs in 2008. Volatility funds in 2018. Silicon Valley Bank in 2023. Different math. Same mistake. Wilmott called it in 2010 with beer. He is still writing. He is still teaching. His students still get hired. Nothing has changed.

Veles

212,456 görüntüleme • 15 gün önce