Rishi said he had no directional skills as a trader, nor did he encourage his staff to make trades... His policy was no freaking trades. LOL. I guess most quants lean towards HFT.
My highlight - on skill at timing market entries "Let's imagine, I know some company inside out, and not because of inside information but because im a really good analyst. I know the company inside out and I know that it's a fraud, I know that it's going to go bankgrupt. But I'm so far ahead of everybody else, and so I go short it... I'm so far ahead of everybody else that I'm wrong for a really long time. I mean, I could go out of business before the market realises that I was right. And so from a returns standpoint I wasn't right, I was wrong, yeah? I went out of business, I lost all my money on a trade that I was somewhere down the line correct about. So I've not shown skill at timing. Skill and timing comes from being able to anticipate roughly speaking a couple of moves ahead."
Ep 54 Rishi Long one short one tactics..? Alpha = not only correct about direction of the market but also the timing. ORC = Opportunity Risk Cost is vital details for your methodology and system to be profitable. HFT isn't what it used to be. Less opportunities there with the restrictions.
I feel he is personally invested and biased with respect to HFT. It reduces liquidity and increases volatility -- largely due to spoofing. When the transmission towers are not working, the markets are more orderly. He cries about how their time advantage and profit is so small, but this fails to explain why the popularity of HFT is strong. And it doesn't gel well with the fact that the SEC overlooks spoofing. Why? Because flash crashes make the market more interesting to participants? No. It's because they're making money. Deep down, most investors are not going to be naive and say, okay, keep doing it.
The only thing people need to know about the SEC is it's a lapdog no watchdog. Jay Clayton (chairman) has deep ties to all the fraudsters JPM, Citi, Goldman, CS, etc. How do you go from defending them as an attorney, to being the "top" securities dog in the game. Funny stuff. They dont care.
I'm not in New York... I'm in Vancouver, people look at me funny when I say algorithmic trading..I actually had to explain what it was to my recruiters. Although, the one FinTech company out here is considering me right now(Even they asked me what algorithmic trading was). It's not like New York, they consider FinTech building those picture check cashing apps like every US bank already has.
no he wasn't. Actually, he was very clear. HFTs are reacting to information that happened in the past faster than you can. Front running is reacting on information that hasn't happened yet / transpired (like insider trading... reacting on information like a press release before it's released). Therefore, it's a race to be first in the reaction of information in the past. Whether you pay a broker or exchange more money for a direct feed, to see this information before retail, it's still information of the past. They just need to be fast and if they aren't they end up having "stale" orders - as he mentioned. What part of his response was evasive?
Great interview - I've read Rishi's book Black Box - several times.. Great read.
Rishi said he had no directional skills as a trader, nor did he encourage his staff to make trades... His policy was no freaking trades. LOL. I guess most quants lean towards HFT.
Good
Technical
1. Systems Thinking / Strategy
2. Learning process; analogies, good practice.
My highlight - on skill at timing market entries
"Let's imagine, I know some company inside out, and not because of inside information but because im a really good analyst. I know the company inside out and I know that it's a fraud, I know that it's going to go bankgrupt. But I'm so far ahead of everybody else, and so I go short it... I'm so far ahead of everybody else that I'm wrong for a really long time. I mean, I could go out of business before the market realises that I was right.
And so from a returns standpoint I wasn't right, I was wrong, yeah? I went out of business, I lost all my money on a trade that I was somewhere down the line correct about. So I've not shown skill at timing. Skill and timing comes from being able to anticipate roughly speaking a couple of moves ahead."
If you are broke yah LOL
@@ajcook7777 You are an Idiot
3:00 "Bob Burger" Wow, I can't believe he's actually real
+Devon Kyle, yes! I'm currently reading it for the second time.
Oh wow, this is Manoj's brother. Wild!
This guy seems like a pretty cool guy who got some luck on his side and made the most of it
35:30 That's not a quant. That's just a discretionary trader with a sophisticated "system" of screening stocks.
Ep 54
Rishi
Long one short one tactics..?
Alpha = not only correct about direction of the market but also the timing.
ORC = Opportunity Risk Cost is vital details for your methodology and system to be profitable.
HFT isn't what it used to be. Less opportunities there with the restrictions.
55:00 payment for order flow
I feel he is personally invested and biased with respect to HFT. It reduces liquidity and increases volatility -- largely due to spoofing. When the transmission towers are not working, the markets are more orderly. He cries about how their time advantage and profit is so small, but this fails to explain why the popularity of HFT is strong. And it doesn't gel well with the fact that the SEC overlooks spoofing. Why? Because flash crashes make the market more interesting to participants? No. It's because they're making money. Deep down, most investors are not going to be naive and say, okay, keep doing it.
The only thing people need to know about the SEC is it's a lapdog no watchdog. Jay Clayton (chairman) has deep ties to all the fraudsters JPM, Citi, Goldman, CS, etc. How do you go from defending them as an attorney, to being the "top" securities dog in the game. Funny stuff. They dont care.
Awesome...
This dude rocks.. Wish I could get a job in Fin Tech.
+CanadianRepublican, what's stopping you?
I'm not in New York...
I'm in Vancouver, people look at me funny when I say algorithmic trading..I actually had to explain what it was to my recruiters. Although, the one FinTech company out here is considering me right now(Even they asked me what algorithmic trading was). It's not like New York, they consider FinTech building those picture check cashing apps like every US bank already has.
+CanadianRepublican - yeah, I'm not sure that your location matters too much. You can be an algorithmic trader independently, operating from home...
For sure.. I am already building at home. :)
+CanadianRepublican, nice one! You and me both ;)
Hmm, he was quite evasive around the front-running topic. No surprise considering he was running a HFT company.
no he wasn't. Actually, he was very clear. HFTs are reacting to information that happened in the past faster than you can. Front running is reacting on information that hasn't happened yet / transpired (like insider trading... reacting on information like a press release before it's released). Therefore, it's a race to be first in the reaction of information in the past. Whether you pay a broker or exchange more money for a direct feed, to see this information before retail, it's still information of the past. They just need to be fast and if they aren't they end up having "stale" orders - as he mentioned. What part of his response was evasive?
This guy is all brains...
Smart guy
No secrets revealed here.
What was the point of this video. Shut poor quality. Should have just been redone at home
Hello
Iam iam iam iam iam iam WHT the f
0:34 'THIER' - LOL...you can't spell...