Interesting article - page 2
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Yeah... I just hope there aren't too many people like Simons among the "sharks"... because I don't have any confidence that my brain is better than the guys who work for him...
You just have less information.
Quote:
There really are a lot of smart and brilliant ex-scientists working there - a staff of about two hundred, a third of whom have degrees Ph.D.
....))))))
Ph.D. This is a "Ph.D.", which is our Ph.D. and has no practical experience.
In a year or three they give him the title of "professor" and they do not use Ph.D. any more.
For example it is insulting to call their professor a PhD, i.e. some Ph.
Quote:
B 1978.m Simons completely abandoned mathematics and took up trading professionally in the stock market. (Interestingly, it happened at forty years of age, when Claude Shannon, the "father" of information theory, abandoned the great science only two decades earlier). After several years of trading by traditional methods (with variable success), Simons decided to put the matter on scientific basis and trade exclusively with help of mathematical algorithms and programs. For this purpose, he established Renaissance Technologies in 1982...
==
It took a brilliant scientist four years to start trading professionally
You just have less information.
about what, brains? :)
Quote:
In 1978.m Simons abandoned mathematics completely and took up trading in the stock market professionally. (Interestingly, this happened at the age of forty, which the "father" of information theory, Claude Shannon, had also abandoned only two decades earlier). After several years of trading by traditional methods (with variable success), Simons decided to put the matter on scientific basis and trade exclusively with help of mathematical algorithms and programs. To this end, he founded Renaissance Technologies in 1982...
==
It took a brilliant scientist four years to start trading professionally.
well, it's the early '80s... that's when auto-trading wasn't developed at all... to put it mildly...
well, it's the early '80s... that's when autotrading wasn't developed at all...
Well, it's not about development of autotrading but about finding the keys to real market regularities and learning to justify that these are statistically significant regularities and not frequency fluctuations.
From late 1989 to 2006, the original Renaissance hedge fund called Medallion (now about $5 billion) returned an average of 38.5% annually to investors.
When we are talking about billions of dollars of capital, the 38.5% return is enormous.
That said, you have to consider:
- the risk managers probably don't allow drawdowns when trading above 5%-10% or possibly even less,
- leverage at these amounts is likely to be 1:1, i.e. there is no leverage.
OK, let's summarise what our trump cards are:
- Mobility (aka liquidity); it's much easier and faster to market the volumes we work with than those of the sharks
- brains :)
- force majeure circumstances, like unfairness of traders of large funds
missed something ?
+The level of discussion is higher than on English-language sites. MetaPhenomenon of the Metatrader.
(-) It's getting there late.