NexusFi: Find Your Edge


Home Menu

 





Quants: The Alchemists of Wall Street


Discussion in Traders Hideout

Updated
    1. trending_up 2,166 views
    2. thumb_up 3 thanks given
    3. group 3 followers
    1. forum 6 posts
    2. attach_file 0 attachments




 
Search this Thread

Quants: The Alchemists of Wall Street

  #1 (permalink)
 
jhol3990's Avatar
 jhol3990 
Sydney, Australia
 
Experience: Intermediate
Platform: NinjaTrader
Broker: IB
Trading: commodity futures
Posts: 7 since May 2010
Thanks Given: 69
Thanks Received: 9

Youtube video - 48 mins

Quants are the math wizards and computer programmers in the engine room of our global financial system who designed the financial products that almost crashed Wall st. The credit crunch has shown how the global financial system has become increasingly dependent on mathematical models trying to quantify human (economic) behaviour. Now the quants are at the heart of yet another technological revolution in finance: trading at the speed of light.

What are the risks of treating the economy and its markets as a complex machine? Will we be able to keep control of this model-based financial system, or have we created a monster?

A story about greed, fear and randomness from the insides of Wall Street.

Director: Marije Meerman
Research: Gerko Wessel

YouTube - Quants: The Alchemists of Wall Street (Marije Meerman, VPRO Backlight 2010)

Started this thread Reply With Quote
The following 2 users say Thank You to jhol3990 for this post:

Can you help answer these questions
from other members on NexusFi?
Request for MACD with option to use different MAs for fa …
NinjaTrader
My NT8 Volume Profile Split by Asian/Euro/Open
NinjaTrader
NexusFi Journal Challenge - April 2024
Feedback and Announcements
ZombieSqueeze
Platforms and Indicators
 
Best Threads (Most Thanked)
in the last 7 days on NexusFi
Retail Trading As An Industry
67 thanks
NexusFi site changelog and issues/problem reporting
47 thanks
Battlestations: Show us your trading desks!
46 thanks
GFIs1 1 DAX trade per day journal
32 thanks
What percentage per day is possible? [Poll]
31 thanks

  #2 (permalink)
35trader
Toronto, Canada
 
Posts: 26 since Oct 2011
Thanks Given: 0
Thanks Received: 3

But in reality anyone using a TA is really using a form of Quant.

Reply With Quote
  #3 (permalink)
 
Lornz's Avatar
 Lornz 
Oslo, Norway
 
Experience: Advanced
Platform: CQG, Excel
Trading: CL
Posts: 1,193 since Apr 2010



35trader View Post
But in reality anyone using a TA is really using a form of Quant.

No, most TA is based on qualitative data... That is significantly different.

Visit my NexusFi Trade Journal Reply With Quote
  #4 (permalink)
35trader
Toronto, Canada
 
Posts: 26 since Oct 2011
Thanks Given: 0
Thanks Received: 3


Lornz View Post
No, most TA is based on qualitative data... That is significantly different.


LOL well I think you just confirmed what I said, if the TA as you put it is based on qualitative data then in my eyes the TA is a form of Quant and stick to my statement. But in reality I see your response as the same as I'm indicating.

Reply With Quote
  #5 (permalink)
 
Lornz's Avatar
 Lornz 
Oslo, Norway
 
Experience: Advanced
Platform: CQG, Excel
Trading: CL
Posts: 1,193 since Apr 2010


35trader View Post
LOL well I think you just confirmed what I said, if the TA as you put it is based on qualitative data then in my eyes the TA is a form of Quant and stick to my statement. But in reality I see your response as the same as I'm indicating.

I see quantitative trading as a branch of TA, but not all TA is quantitative. TA is often more descriptive than measurable, hence it is qualitative rather than quantitative. It is often based on vague terms like overbought/sold, trend, chop, etc... Most cannot quantify these terms, at least not in real-time -- which is when it counts.

Qualitative vs Quantitative Data

Visit my NexusFi Trade Journal Reply With Quote
  #6 (permalink)
35trader
Toronto, Canada
 
Posts: 26 since Oct 2011
Thanks Given: 0
Thanks Received: 3

Quote: I see quantitative trading as a branch of TA, but not all TA is quantitative. TA is often more descriptive than measurable, hence it is qualitative rather than quantitative. It is often based on vague terms like overbought/sold, trend, chop, etc... Most cannot quantify these terms, at least not in real-time -- which is when it counts.


over sold and over bought are not a form of TA's.
I disagree with you on your TA is a descriptive measurable as most if not all are created from some sort of historic data.

So perhaps we should agree to disagree.

Cheers and GL in your trading.

Reply With Quote
  #7 (permalink)
 
Lornz's Avatar
 Lornz 
Oslo, Norway
 
Experience: Advanced
Platform: CQG, Excel
Trading: CL
Posts: 1,193 since Apr 2010


35trader View Post
Quote: I see quantitative trading as a branch of TA, but not all TA is quantitative. TA is often more descriptive than measurable, hence it is qualitative rather than quantitative. It is often based on vague terms like overbought/sold, trend, chop, etc... Most cannot quantify these terms, at least not in real-time -- which is when it counts.


over sold and over bought are not a form of TA's.
I disagree with you on your TA is a descriptive measurable as most if not all are created from some sort of historic data.

So perhaps we should agree to disagree.

Cheers and GL in your trading.

I'm not looking to argue, I think we agree on some level. I use "quantitative TA", as it were. However, I often see folks referring to overbought/sold conditions on RSI and similar, but not being able to further quantify it. If you look at most posts on the forum, the majority is speaking in relative terms and use a fair deal of subjectivity in their analysis. The data they extract is often qualitative, not quantitative. That the data they are analyzing is quantitative in its original form, does not mean that the observations are quantitative as well.

I am not saying that this necessarily is bad; the majority of my trading is discretionary. But I would find it false to label most TA as quantitative analysis.

Welcome to the forum. Good trading!

Visit my NexusFi Trade Journal Reply With Quote





Last Updated on October 13, 2011


© 2024 NexusFi™, s.a., All Rights Reserved.
Av Ricardo J. Alfaro, Century Tower, Panama City, Panama, Ph: +507 833-9432 (Panama and Intl), +1 888-312-3001 (USA and Canada)
All information is for educational use only and is not investment advice. There is a substantial risk of loss in trading commodity futures, stocks, options and foreign exchange products. Past performance is not indicative of future results.
About Us - Contact Us - Site Rules, Acceptable Use, and Terms and Conditions - Privacy Policy - Downloads - Top
no new posts