The Dark History of Two Sigma - Stolen Models and Stellar Returns

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  • Опубликовано: 27 дек 2024

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  • @Finaius
    @Finaius  3 года назад +56

    A quant video long overdue. Enjoy! Also, check out Dr. Lopez De Prado's ground breaking book here - amzn.to/3nMK6Zo (Advances in Financial ML)!

    • @shimronalakkal523
      @shimronalakkal523 3 года назад

      Do you guys have a discord??

    • @Finaius
      @Finaius  3 года назад

      Sorry no.

    • @iamkhabz
      @iamkhabz 3 года назад +1

      FINALLY!

    • @mashavu09
      @mashavu09 3 года назад

      Could we connect kindly ? I am in awe of your production but most of all your knowledge! Any social media u will find me ! Kindly will appreciate?

    • @thatoyaonebogopa9483
      @thatoyaonebogopa9483 3 года назад

      Phew...finally.

  • @eirikvagen3669
    @eirikvagen3669 3 года назад +74

    Told you the subs whould pour in if you kept up the quality. In a year i think you will pass all expectations, keep on going man! Great videos!

  • @richunclejoey2249
    @richunclejoey2249 3 года назад +25

    I like "When someone tries to sell you their profitable trading patterns". I swear more of these gurus on social media make more off their views, hustling e-content sales and courses or affiliate sale of signal services then they make actually trading. I would go as far as to wager the majority of the "gurus" have never learned basic risk management, perfected their own trading psychology, or even made enough for a substandard of living off of solely trading at any point yet in their careers' or lack there of. Great video again. I had subscribed to this channel a while ago and today I had some free time when the markets slowed down for a NY session lunch and started exploring your content more deeply. Glad I did! Great channel Great Work. Hopefully your channel gets millions of subs, Thank you for you efforts

  • @ClutchJoyner
    @ClutchJoyner 3 года назад +89

    Big fan of this channel!

  • @walterdeanlewis
    @walterdeanlewis 2 года назад +16

    Great video. Well researched, and cool visual effects. I'd like to see your format applied to a decade (20's/60's/80's 90's 00s etc) series that could show the time, the bubble of the era, the villains, etc. Keep up the good work!

  • @likemysnopp
    @likemysnopp 3 года назад +7

    This channel is a goldmine im currently exploring. Really nice to see that my idea of that no strategy will work for a long time in the market seem to be a very true idea

  • @Trevor_CS2
    @Trevor_CS2 3 года назад +8

    Been waiting for this one. Happy to see its finally released!

  • @Borisivan
    @Borisivan 3 года назад +51

    A video about Bill Huang would really slap at this moment.

    • @Finaius
      @Finaius  3 года назад +50

      I'm thinking of doing the whole history of the Tiger gang.

    • @ofyhwh-0076
      @ofyhwh-0076 3 года назад +1

      @@Finaius do it

    • @chiterfromdahood
      @chiterfromdahood 3 года назад +2

      @@Finaius That would be epic!

    • @PerennialQuest
      @PerennialQuest 6 месяцев назад +1

      ​@@Finaiusdid bro forget?

  • @CookbookAdventures
    @CookbookAdventures 3 года назад +6

    Keep making finance videos, they are amazing. Thanks for all the hard work. I look forward to them.

  • @miguelo.
    @miguelo. 3 года назад +20

    The storytelling is Netflix quick-series-worthy.

  • @YouLoveMrFriendly
    @YouLoveMrFriendly 3 года назад +27

    Your channel helped save me from the delusion of day trading. I realize now what resources it takes to get an "edge"in these markets, and the lone wolf just doesn't stand much of a chance.
    Great videos and production.

    • @jaghad
      @jaghad 3 года назад +2

      If every person would think like you there would be no Amazon, no Tesla and so on. Still, it probably was a good choice, but don't put a cap on your potential. Then you will never know what you could have become.

    • @abhijitdixit1164
      @abhijitdixit1164 3 года назад +2

      You are mistaken if you're considering that both multi billion hedge funds and retail day traders are seeking the same alpha, strategies of profitable traders can't be simply extrapolated to work with billions of dollars.

    • @libertybelllocks7476
      @libertybelllocks7476 2 года назад

      @@abhijitdixit1164 Exactly. What works for $1MM account wont work for a $1Bil account, and vice versa. It is difficult, but possible, you must follow the machines

    • @danaphanous
      @danaphanous 2 года назад

      ​@@abhijitdixit1164 Not sure this is correct in the case of quant funds. Traditional funds maybe. Any consistently profitable signal that an individual trader is looking at with their eyes/models is likely also being looking at by quant algorithms...particularly if that information was shared online or in a "course". Any public trading strategy can be implemented faster by an AI, and as stated in this video, Two-Sigma alone looks at thousands of signals and researches new ones because as soon as one because public it stops working as quant funds compete to arbitrage. It doesn't cost them much money to have a different algorithm on standby even if the signal is for a smaller dollar amount like 1M.
      Now, one place where your advice DOES make sense is when it comes to buy and hold strategies on smaller stocks. An AI has little edge when it comes to analyzing a business and owning it for a few years or more, and most big fund managers completely ignore the small cap space other than to put them in indexes as it isn't worth their time. So fundamental analysis on individual companies does pay off.

    • @gracegraci8064
      @gracegraci8064 2 года назад +1

      Boll...s, pal! I am a lone wolf and my head is over the water from years ago.

  • @S1mple0bserver
    @S1mple0bserver 3 года назад +33

    I think your amazing channel deserves above 1M subscribers.
    It'd be amazing if you could make more technical videos and talk more in-depth about the quant strategies, research process, data, models, and ...

    • @Finaius
      @Finaius  3 года назад +5

      Duly noted.

    • @fminc
      @fminc 3 года назад +1

      @@Finaius This is the first video I have seen of yours, although for some reason I was subscribed already. I understand what the gentleman is asking of you, is quite the tall task, in itself. But that was very encouraging, to see your response. Thats the spirit. Thanks for your work.

  • @samraatkadam6827
    @samraatkadam6827 4 месяца назад

    Bro i love this channel keep churning these out man

  • @pesachase7023
    @pesachase7023 3 года назад +18

    When that guy leaves jail he'll become a Bond villain

  • @khalidhakimi93
    @khalidhakimi93 3 года назад +2

    love your content, please make as much as you can. this is gold stuff

  • @ForsakenPrayers
    @ForsakenPrayers 3 года назад +10

    You should make a video on Jane Street Capital or Hudson River Trading

  • @Alex-kf8fl
    @Alex-kf8fl 3 года назад

    you keep getting better & better with each video man, great work :)

  • @DailyProg
    @DailyProg 3 года назад +1

    Amazing videos so far. I always look forward to the next ones

  • @jeffgoucher6956
    @jeffgoucher6956 3 года назад

    I love your channel mate, haven't found anything else like it. Keep up the great work!

    • @Finaius
      @Finaius  3 года назад

      Thanks!!

    • @rokyericksonroks
      @rokyericksonroks 2 года назад

      Two Sigma are assholes, but their algorithms work so we have to respect that. I think.

  • @soufianeibnouelmahdi296
    @soufianeibnouelmahdi296 3 года назад +1

    One of the best channel on RUclips about finance history 👏

  • @GeorgesSegundo
    @GeorgesSegundo 3 года назад

    Each video of yours is a gift brother, thank you so much.

  • @gbballpl
    @gbballpl 3 года назад +4

    Is the music the intro from west world?

  • @adityasharma3526
    @adityasharma3526 3 года назад +3

    Waiting for a 3 weeks commenting before watching I know it's excellent.🙏🙏🙏

    • @Finaius
      @Finaius  3 года назад +1

      Hah yeah

    • @adityasharma3526
      @adityasharma3526 3 года назад

      My portfolio lost 40% then recovered last year doubled my capital. I had position in gold too that gave 25% return when everything was going down. While normal cash instrument for long term remain intact @ 8.5%

  • @dontevntrip8627
    @dontevntrip8627 3 года назад

    You make some great short films, I love these. Keep at it you will keep growing.

  • @stevengreidinger8295
    @stevengreidinger8295 3 года назад +9

    The title of the video implies that Two Sigma stole models, not that an employee stole from them. That's not fair to this particular firm.
    Two Sigma may or may not be the good guys in this game. That depends on whether we support the organizations that invest with them. Is Two Sigma trying to help a bunch of nonprofits while charging reasonable fees, or are they trying to just grab 150% of the benefit for themselves? The video didn't address that question at all.

  • @tapanginoya583
    @tapanginoya583 3 года назад +1

    Yoo, the animation and music became next level in this video

  • @KeithAdam
    @KeithAdam 3 года назад +10

    Great video man! Solid research and great editing

  • @whale4866
    @whale4866 2 года назад

    Although Finaius is doing what he can production wise he’s on a great start. Very good information shared and I can’t wait to see your journey unfold further. You’ve earned a supporter here.

  • @bouzie8000
    @bouzie8000 9 месяцев назад

    This was so fun to watch. Doubly informative as well

  • @graymars1097
    @graymars1097 3 года назад

    Woah! Where has been this channel?! It ok it ok I here
    Great video man

  • @renattomejia3619
    @renattomejia3619 3 года назад

    Recently came across your channel, and I am loving it! New subscriber

  • @plastelina_ytb
    @plastelina_ytb 3 года назад +4

    As others have said: really enjoy the content and story telling 👍🏽

  • @kennyaintdead5488
    @kennyaintdead5488 3 года назад

    Absolutely love the channel!! 🚀🚀🚀🚀🔥🔥🔥🔥🔥🔥🔥🔥🔥🔥🔥🔥🔥🔥🔥🔥🔥🔥

  • @joshoppenheim5093
    @joshoppenheim5093 3 года назад +8

    The westworld theme song is hype

  • @ZenTradeGame
    @ZenTradeGame 3 года назад +1

    I love when your videos drop 💪🏾

  • @hooregi4500
    @hooregi4500 3 года назад +3

    I love these videos. Very few make stories regarding these topics. I hope RUclips is sustainable enough so that you can keep doing them. Very well crafted!

  • @ambarishj3314
    @ambarishj3314 3 года назад

    Still an amazing channel. Thank you buddy.

  • @petera4476
    @petera4476 3 года назад +1

    Awesome content!
    Love the Westworld theme music too!

  • @habibbialikafe339
    @habibbialikafe339 3 года назад +1

    Rennaissance Tehnologies saw over 2 billion in redemptions after poor performance. However, the medallion fund remains strong, but it was the other funds the firm manages that performed poorly.

  • @projekts5047
    @projekts5047 3 года назад

    love these videos man!

  • @sebastianburnaz6760
    @sebastianburnaz6760 Год назад

    Super cool documentary!

  • @davidchiumeraable
    @davidchiumeraable 3 года назад

    Another amazing video! Keep it up! :)

  • @dxtrai8554
    @dxtrai8554 3 года назад +1

    thank you for the new masterpiece

  • @aks9545
    @aks9545 3 года назад

    🙏 thanks for posting amazing videos man I love them

  • @rhythmandacoustics
    @rhythmandacoustics 3 года назад +3

    My 2020 returns are phenomenal, but I really do not care about stock prices. I am long-term fundamentals, value investor. I rejoice that there are market crashes. As long as you buy shares thinking of them as businesses and not pieces of paper and avoid leverage, you will do well. Debt is what causes business and individuals to go bust.

    • @Finaius
      @Finaius  3 года назад

      That's a good attitude!

  • @zachkrishna4949
    @zachkrishna4949 3 года назад +1

    Good to see veer Singh back

  • @john6291
    @john6291 3 года назад +4

    love the Pizza Hut meeting place..

  • @goldenratio183
    @goldenratio183 3 года назад

    Love your videos, keep em coming!

  • @blacklist7564
    @blacklist7564 3 года назад +1

    Thanks again. Please do a video on self-funded traders like a top ten list or so.

  • @ebitdareadthebook1535
    @ebitdareadthebook1535 3 года назад +1

    Love the videos! You should do one on Milken, Tiger Cubs, Stevie Cohen, Galleon/Raj, etc

  • @kenchen7737
    @kenchen7737 3 года назад

    Awesome video as always!!!

  • @nashaafshar6392
    @nashaafshar6392 3 года назад

    Great video, thanks guys!

  • @gwagon3268
    @gwagon3268 3 года назад +7

    2:53
    That laugh was sick😷

    • @infiltr80r
      @infiltr80r 3 года назад +1

      I think the guy next to Bezos is Vint Cerf.

  • @TheSepz
    @TheSepz 3 года назад

    In 2020 we did 39% net and this year we are on our way to 60% profit. We have proof. We have been also developing our own model since 2015 and we are aiming to launch it in 2023.
    Thanks for your video.

  • @datajake2742
    @datajake2742 10 дней назад

    I have no idea why you used the WestWorld opener as the music here but I liked it a bit

  • @pankajpawar6604
    @pankajpawar6604 3 года назад +1

    Amazing job sir 🙏🙏🙏

  • @User-gj1ub
    @User-gj1ub 3 года назад +2

    sigma male grindset 🔥🔥🔥🔥🔥💯💯💯💯💯💯 #trillionaire

  • @LicoInvestments
    @LicoInvestments 3 года назад

    Great stuff as usual!
    Thanks for the upload- but now I want to watch Westworld.

  • @robertcooper1640
    @robertcooper1640 2 года назад

    Great channel, Great videos.

  • @jrfabian
    @jrfabian 3 года назад

    love the channel!

  • @nayanmipun6784
    @nayanmipun6784 2 года назад +2

    I trade with the 400 moving average, and I have seen other programmer's (some of who are not traders) automation where the software can't even properly trade the entry and exits according to the 400 moving average which is actually very easy, trading is not hard if you know the tricks

  • @ndeetrust8901
    @ndeetrust8901 3 года назад +1

    Started my trading journey around 2017. Around 4th quarter of 2020 i started to make consistent returns. In 2020 i made 48% overall profit. It could have been luck due to the bull market but was going through my trading strategy i put together and sticked with it. Currently 2021 im up 221% for the year. I made my yearly salary already. Huge confident boost that my hard work is paying off hopefully in the next year or so ill leave my job and do this and other investments full time.

    • @Finaius
      @Finaius  3 года назад +2

      That's awesome!

    • @Joker-2357
      @Joker-2357 2 года назад

      i have invested in small cap equity mutual funds in india around 200k $ i got around 120% return within an year

    • @Joker-2357
      @Joker-2357 2 года назад

      Also without no stress

  • @saluxnizigama5561
    @saluxnizigama5561 3 года назад

    Keep it up!!! Big fan

  • @Bernoulliflyer
    @Bernoulliflyer 3 года назад

    Very interesting and entertaining! Thank you.

  • @michaelgonline
    @michaelgonline 3 года назад

    Excellent channel!

  • @predatorab711
    @predatorab711 3 года назад

    Thank you for the beautiful videos !

  • @joelmartinez625
    @joelmartinez625 3 года назад

    Hey love your videos keep it up!

  • @ajaxbeta8278
    @ajaxbeta8278 3 года назад

    great video again. you are becoming my favorite channel for sure, looking forward to the next!! keep at it and build a big email list. then youll get acquired by bloomberg or someone

    • @Finaius
      @Finaius  3 года назад

      Thanks. Haha I hope!!

  • @systematicfx
    @systematicfx 3 года назад

    that's what I have been doing for a few years now. Having the data helping me.

  • @GabeClendenning
    @GabeClendenning 3 года назад

    just discovered this channel, definitely subbed

  • @notalexmarin
    @notalexmarin 3 года назад

    love your videos, keep it up!

  • @moddersarena2800
    @moddersarena2800 Год назад

    Storyline is amazing

  • @suyash159
    @suyash159 2 года назад

    My trading patterns are so good, it'll generate thoughts in your head to never trade derivatives again

  • @coughforme21
    @coughforme21 3 года назад +1

    Buying retracements on movers that have spiked or massively run-up seems to work well.

  • @yvonney6732
    @yvonney6732 3 года назад

    Who made the music? The music is awesome

  • @pleaseenteraname3607
    @pleaseenteraname3607 3 года назад

    Your channel will be the standard for information on hedgies

  • @mikedean6576
    @mikedean6576 3 года назад

    Amazing content!

  • @darleneatkinson6730
    @darleneatkinson6730 2 года назад

    Rocky, I'll be upfront with you, I just love your videos I put zero in any investments I am past retire age so risking my fund to me not wise. I might be here today gone off the earth tomorrow I have other loved ones to think about beside myself. However, great videos they are super well edited and recorded uploaded awesome to watch. Thank You do much plus it like DIO of these people.

    • @Finaius
      @Finaius  2 года назад

      Of course. Thanks!

  • @danijcruz
    @danijcruz 3 года назад

    Best channel!

  • @eddyshasha1996
    @eddyshasha1996 3 года назад

    What an excellent video!

  • @balajivenkatesan2563
    @balajivenkatesan2563 3 года назад

    well done. question is how do predict a more slow moving regime change? like interest rates, etc.

  • @growproteas1148
    @growproteas1148 3 года назад

    you make great videos!

  • @alexs3711
    @alexs3711 3 года назад +1

    Keng Gao’s fund is now holding over CNY 10B AUM. I guess not too bad for him. Quant Fund is rising in China.

  • @gwagon3268
    @gwagon3268 3 года назад

    What's with the taxi drop off vs correlation to stock price

  • @thatoyaonebogopa9483
    @thatoyaonebogopa9483 3 года назад

    Great vid. Please give me more quant stuff lol. I hv had to watch same vids over añd over just to get my daily fix....😅😅

  • @thekid3563
    @thekid3563 3 года назад

    great channel

  • @alfredthevarajah1344
    @alfredthevarajah1344 3 года назад +2

    In 2020 my portfolio had a return of 12%. Not bad for a retail investor.

    • @thomas7365
      @thomas7365 3 года назад +1

      From the beginning to the end of 2020 The S&P 500 returned 15%. You would have been better off just following an index fund like a reasonable person. If you were trading instead of long term investing, you did even worse in comparison because what would have been capital gains are now taxed as income.

    • @alfredthevarajah1344
      @alfredthevarajah1344 3 года назад

      @@thomas7365 I live in Norway and we don’t pay tax on capital gains unless we take out as dividends. I am not going to take any dividends for next 5 years. ✌️

  • @sharemedia8069
    @sharemedia8069 3 года назад +1

    Mr. Gao was back to China and got money from some rich people to set up a private equity fund.

  • @nandotorres14
    @nandotorres14 3 года назад

    Nice videos... Congrats!!!!

  • @scottmorrison5668
    @scottmorrison5668 3 года назад +1

    I believe net of fees, a Vanguard index fund compounded over decades will provide a better return.

  • @sagarxtreme
    @sagarxtreme 3 года назад

    Hi please make the music audio you used here. It gives pump up and concentration while doing analysis

  • @ExplainedExplanation
    @ExplainedExplanation 3 года назад

    Great content

  • @EliTheCryptoAndAiGuy
    @EliTheCryptoAndAiGuy 3 года назад +1

    Can you do one about Robertson Tiger Management, Tiger Global, Archegos, and Millenium?

  • @manifestyourlife6
    @manifestyourlife6 3 года назад +1

    FINAiUS is a top ten tube channel for me. 😍

  • @frankiel3854
    @frankiel3854 3 года назад +1

    Kangaroo Gao is now the CIO of an investment company in China. You can sentence a man, but you can’t take away his talent

  • @jack_sparrow1049
    @jack_sparrow1049 3 года назад

    Please make videos on how to make or do something like the quant. For a normal trader. I am programming my algo but i am interested in quant. How do i use some rescuers l techniques of quant is there any free resourse if it is outdated still it will be helpful for me. Sir if you have any please share

  • @RealmsOfThePossible
    @RealmsOfThePossible 2 года назад

    For some reason quants remind me of the double slit experiment for their super position properties and unpredictability. The markets are just another wave function.

  • @17teacmrocks
    @17teacmrocks 3 года назад

    retail and finance ppl look at like no more than a dozen technical indicators and fundamentals. data science-driven funds today can examine tens of thousands of features in ML pipelines, producing very low tracking error models across the entire stock universe.
    the kaggle competition where two sigma opened input to the DS community for their core factor model I think had a feature set that was only a few hundred inputs. I was just reading a submission from one of the winners. Depending on the data provided, it may actually be more effective to reduce the final model's factor loading set to avoid overfitting. I've seen other approaches where they do include numerous features, but orthogonalize their contribution to remove duplicate correlated impact.

  • @OlatundeAdegbola
    @OlatundeAdegbola 3 года назад

    3:17 Anyone see that expanded flat pattern for trend continuation? (Winks ☺ )

  • @alex9046
    @alex9046 3 года назад +1

    Next up- how about Nassem Taleb and Universa?