Quants are using stochastic calculus a lot now a days in building algorithmic trading strategies.
Do you know fresh PhDs are getting hired as quants with enticing salaries as high as $400K?
Way forward is algorithmic trading. Day of using technical analysis are coming to an end.
If you visit a hedge fund or a big bank, you will find the atmosphere like that in academia.
Modern Probability Theory is being used a lot in building sophisticated mathematical models.
These mathematical models for financial markets are indeed powerful.
I have written a blog post on the Modern Probability Theory for Traders.
In this post I explain how to build probability price models.
Algorithmic trading is all about building mathematical models that are correct say 80% of the time.