My research for this video mostly comes from two books. You can check them out here - amzn.to/37yU6jh (The Quants) and amzn.to/3auRtRq (Alpha Masters). If you want to learn the REAL scientific way to do Quant Research, check out Dr. Lopez De Prado's ground breaking book here - amzn.to/3nMK6Zo (Advances in Financial ML)!
@@Finaius Is Prado book useful practically? I thought it is closer to academic side. Maybe I am wrong. Maybe I will read it and implement some of methods from the books. To me, only hedging and arbitrage works . Trend following with prediction models hard to predict the consistent pattern.
my friend from hs is a quant researcher at DE Shaw out of MIT 3:00 yep even MS interns reported this. I read their papers and one indicated Pareto optimal trading times are buying at the close or at the bottom of a vol smile, selling at the open. one HFT firm even glitched the mkt 1 summer until they were fined : Athena. the biggest name in finance research today, De Prado, found there are micro-inefficiencies on avg at hourly ticks, bc a lot of models recalibrate at even timestamps
Well said... ! My experience attests to what is said in this video. I have been a trader for almost 20 years and have been trading full time on my on for the last 7 to 8 years. I moved from using technical analysis to quant analytics using machine learning. Gone are the days when finding patterns on a chart worked. Now trading edges are tiny embedded in highly noisy data. We are like mining micro gold dust in a pile of dirt. The only way is to do it algorithmically and to combine lots of the gold dust into something worth while.
Another thing is many people think that success in trading is about finding a "secret sauce". Once you find that, you'll live happily ever after. In reality, the market is reflexive, meaning as more people trade in a similar way, things that worked in the past will stop working in the future. That's why there are so many scammers out there who manage to prove that their models actually work beautifully during back test. But after you pay them thousands of dollars and apply the model to future markets, they will fail miserably. Therefore, to be consistently profitable, models will have to be re-trained periodically and constantly to find new patterns. That becomes an impossible task for old-school traders who are still trying to find patterns manually. Algorithm is the only way to go !
@@BlackSwan-sq2iw I can safely say your thesis that algos are the only way is wrong, maybe you just aren’t able to do it without algos, but that’s short sighted to state your personal experience as fact. I’m an “old school” discretionary trader and I find new patterns that repeat or evolve every day, in multiple time frames and across asset classes, that are trade-able and I actually trade them. Problem sometimes if anything is finding too many patterns. People who say short term price movements are white noise aren’t looking at it correctly or maybe just don’t have the required pattern recognition skills.
@@vinaychauhan7936 can't agree more. Suddenly we gotta hear someone tell us trading is this and that and limited. I trade a certain "pattern" nowadays that simply rarely fails as long as I understand the concept around it and wait. Certain specifics dont go away
Literally the only thing you said about D.E. Shaw's quant strategy was that they use statistical patterns... Not to be rude but this video does not explain anything.
@@popeater07 I assume he is referring to robinhood, which is brokerage in the US, preventing its users from buying meme stocks during their short squeezes.
Love your channel! If possible could you make more quant fund videos. Those are my favorite & you seem to be one of the only people making them. Even videos on the topic of quant finance may even make for good videos.
So as a regular retail investor you have very little chance of success unless you build your own systems to compete against the most sophisticated systems the world has known..? Got it! 🤦♂️😂
Nope. Just be on the side of the manipulation. They can't manipulate it in all directions at all times. You can go long, short, strangled, condor ect ect. So they might manipulate the market for sure.... But not all retailers lose because of that
@@aaryanmehta4609 You can't automate EW back-testing. You have to do it manually or do several months/years of forward testing. I'm pretty sure folks like you can't commit to that. That's why you failed. 😂
thats true. I used to laugh so hard at those "forex/trading gurus" out there that showed some lines on graph calling it "technical analysis" , those guys can't make a simple moving average having the formula in front of them.
@@ggtl304 find a method that has an edge and spend 1 to 3 years mastering it, depending on it's complexity. Make sure you create a trading plan out of it from your years of testing and experience. Then work on a risk management strategy with realistic expectations and you're good to go. For me, I trade with a combination of Elliott Wave theory and Quarter's theory. And I love it!
@@OlatundeAdegbola Also basic fundamentals! Always listen to and read what the Fed says! Last April they cut rates & said they're not increasing for years. I've been shorting the dollar since 🥃
When other people are aware of your patterns, it can be easier to be one step ahead. All financial apps have the big data of all patterns for all traders that use their platforms. Big data is different than individual best performer data.
Not sure if the case with this particular system (nothing in this video actually explained how anything worked) - but have noticed in the past certain folks tended to release them after they found out they are not as useful as they thought and can then make better and more consistent gains selling books.
The reason some of these patterns work is because the algos manipulate the price and create the patterns. Jim Simmons said one time "no one is keeping any secrets, they're all doing the same thing." I've seen some intraday patterns repeat themselves over and over, touching the price levels to the penny. Coincidence? I don't think so.
As an economist I vehemently disagree with these claims asserting economists accepted understanding of market prices are flawed. The biggest consensus across viewpoints argues that fundamental economic assumptions and “comprehensive” models are flawed and cannot possibly be a successful tool at discrete points in time. Also, the idea that economists are unaware that a significant enough proportion of traders seek short term, and even intra-day, profit, is what is fundamentally flawed. Prices at any given time are determined by economics, which yields poor short-term predictive efficacy. Quantitative data providing statistical analysis to describe price movements, or predict irrational shocks, given available parameters is not in the realm of economics. But interpreting that information to predict the future must have an economic foundation. That’s how multi factor models work. Regardless, thank you for the cringe. I couldn’t have enjoyed it without your Ill founded claims and misinformation
so the video was a bit respectful in describing economists, and so what. Its a channel from the finance person point of view , definitely not academics
I don't mean this in a derogatory way. I wish I was that bright. These aren't traders, they're speculators. Pulling stunts on the markets and it's participating crowd with actions never before seen or heard of. That's speculation not trading. They didn't play by the rules or guidelines, they circumvented the rules.
![[DRAGON BALL LEGENDS REVEALS ＆ STUFF] LEGENDS FESTIVAL 2024 Special Edition Part 1](http://i.ytimg.com/vi/mV5bGIswTtQ/mqdefault.jpg)
My research for this video mostly comes from two books. You can check them out here - amzn.to/37yU6jh (The Quants) and amzn.to/3auRtRq (Alpha Masters). If you want to learn the REAL scientific way to do Quant Research, check out Dr. Lopez De Prado's ground breaking book here - amzn.to/3nMK6Zo (Advances in Financial ML)!
Thanks for the resources!
@@jonathaneidam2289 My pleasure, cheers mate!
@@Finaius Is Prado book useful practically? I thought it is closer to academic side. Maybe I am wrong. Maybe I will read it and implement some of methods from the books. To me, only hedging and arbitrage works . Trend following with prediction models hard to predict the consistent pattern.
Also by the way, I forward your video to my high school daughter to motivate her interest in math, the one you discuss the quant trading.
@@juggernautuci8253 that's awesome! Prado's book is useful but hard to implement.
For trading be good at observing , it gave me something very valuable, so dear traders compare , observe , think outside the box 😊
Correct!!! Same here man.
I don't even remember how I got here, but I don't want to leave. Your channel is terrific!! Keep doing a great job!!
my friend from hs is a quant researcher at DE Shaw out of MIT
3:00 yep even MS interns reported this. I read their papers and one indicated Pareto optimal trading times are buying at the close or at the bottom of a vol smile, selling at the open. one HFT firm even glitched the mkt 1 summer until they were fined : Athena. the biggest name in finance research today, De Prado, found there are micro-inefficiencies on avg at hourly ticks, bc a lot of models recalibrate at even timestamps
Yeah, have your read his book Advances in Financial ML? He talks a lot about that in the book.
Well said... ! My experience attests to what is said in this video. I have been a trader for almost 20 years and have been trading full time on my on for the last 7 to 8 years. I moved from using technical analysis to quant analytics using machine learning. Gone are the days when finding patterns on a chart worked. Now trading edges are tiny embedded in highly noisy data. We are like mining micro gold dust in a pile of dirt. The only way is to do it algorithmically and to combine lots of the gold dust into something worth while.
You know it!!
Another thing is many people think that success in trading is about finding a "secret sauce". Once you find that, you'll live happily ever after. In reality, the market is reflexive, meaning as more people trade in a similar way, things that worked in the past will stop working in the future. That's why there are so many scammers out there who manage to prove that their models actually work beautifully during back test. But after you pay them thousands of dollars and apply the model to future markets, they will fail miserably.
Therefore, to be consistently profitable, models will have to be re-trained periodically and constantly to find new patterns. That becomes an impossible task for old-school traders who are still trying to find patterns manually. Algorithm is the only way to go !
@@BlackSwan-sq2iw backtests are mostly unreliable. But people tend to be sold on that a lot.
@@BlackSwan-sq2iw I can safely say your thesis that algos are the only way is wrong, maybe you just aren’t able to do it without algos, but that’s short sighted to state your personal experience as fact. I’m an “old school” discretionary trader and I find new patterns that repeat or evolve every day, in multiple time frames and across asset classes, that are trade-able and I actually trade them. Problem sometimes if anything is finding too many patterns. People who say short term price movements are white noise aren’t looking at it correctly or maybe just don’t have the required pattern recognition skills.
@@vinaychauhan7936 can't agree more. Suddenly we gotta hear someone tell us trading is this and that and limited. I trade a certain "pattern" nowadays that simply rarely fails as long as I understand the concept around it and wait. Certain specifics dont go away
Absolutely stat tests are necessary part of the trade , but developing keen sense of how prices move in general starts in grocery store !
I finally found the channel I was looking for for years. thanks !
Same here
For far both videos from your channel I have seen have been excellent.
Absolutely beautiful documentary and amazing closing message. Thanks for the video!
Literally the only thing you said about D.E. Shaw's quant strategy was that they use statistical patterns... Not to be rude but this video does not explain anything.
He did mention “ghost pattern” and other trading signals both unconventional ways to capitalize on market behavior…so….
If you knew what they did, then they'd be doing a poor job lol
Did you really expect for them to spill the secret sauce so that a random youtube commenter could profit from it and move next door to Bill Gates?
His all videos about quant is this way.
@@genb4374 hahahahacac fair
Saw this video. Compelled me to subscribe! I can appreciate the level of work this is. BRAVO
Amen!
This is my favorite channel on RUclips
This put a smile on my face 😹
Jeff Bezos used to work for D.E Shaw lol.
and interviewed his ex wife in DE Shaw
"come on dude if the market was efficient it'd be a straight line" sun zu, art of war against emu's
The best channel on trading
An excellent effort about the explanation of the "what's and why's" in the financial industry.
Greediness. didnt you know it?
somehow i stumbled on to this channel ,any serious investor or entrepreneurial can learn something without learning the hard way ,FINAiUS top notch
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You got another sub. I'm a trader/investor and you have some great content
Great content! Glad I found this. In one year from now you will have thousands of followers.
I love our channel dude
Love your work, please keep them coming.
I'm calling it today 7th July 2021: You should reach 500K subscribers within the next 12 months and another 500K within half of the that.
Haha, let's go!!!
I just subbed and he’s at 480k (+1) rn, Jan-7-24
@@bibbidi_bobbidi_bacons Damn! I was off by approximately 13 months. I blame it on the covid - russia - Gaza series of events.
Keep it coming bro
I look forward to more of these.
the secret pattern: freeze all buying options on trading platforms LOL
That's the secret hiding in plain sight.
Which country ?
@@popeater07 I assume he is referring to robinhood, which is brokerage in the US, preventing its users from buying meme stocks during their short squeezes.
@@MrSmith-on1qz meme stocks? Hmm, you mean GAMESTOP?!?!
@@babblingidiot7903 dark pools? you mean the brokerages hedge funds use?
I wanna buy LEAPS on this channel, but since i cant I'm just gonna subscribe lol
Keep up the good work!
793 subs?
Man you are going to have millions
Haha, I hope. But all I can do now is focus on making more videos.
You gonna touch 100k + in under 6 months
@@avinashdwivedi2015 Wow, that'd be nice!
Well done bro
Thanks
Really interesting! Love these quant videos!
Keep up the good work!
Love your channel! If possible could you make more quant fund videos. Those are my favorite & you seem to be one of the only people making them. Even videos on the topic of quant finance may even make for good videos.
Of course 😊
Quality content. Appreciate your work and hope you are well.
Please make more content, your material would be worth a paid subscription
So as a regular retail investor you have very little chance of success unless you build your own systems to compete against the most sophisticated systems the world has known..? Got it! 🤦♂️😂
Nope. Just be on the side of the manipulation. They can't manipulate it in all directions at all times. You can go long, short, strangled, condor ect ect. So they might manipulate the market for sure.... But not all retailers lose because of that
@@Iburn247 good point my funk soul brother! Obviously I posted this at the beginning of my journey. I’ve since improved and can see a better day.
Learn the Wyckoff method to understand manipulation better.
It's a gold mine.
Sir you will still be at the beginning of your trading journey for the next few years 😉
@@JJJJJJJJJJJJJJJJJJJJJJJJJJJJJ6 thanks for the encouragement! 😂
great analyses on this channel. keep it up, man!
you always have quality content bro, the editing really sucks you into the story, keep doing a great job bro!
Buying and holding a long time is statistically successful
Surprisingly good content. Good work! I like being surprised on the upside.
Right?! Thanks
Your cannel is awesome
This channel is Great. Thank you for these videos.
First time here, got my sub
I’m such a fan of your channel!
Thank you for the awesome content 🏛🏦💰
Just subscribed. A lot of content to watch. 👍🏻
Take your time, friend.
these videos are soo great!
Understanding that I will never understand what these guys know just proves that I am just lucky if I make any money
Most of these guys are PhDs...takes dedication and experience to understand...most of these guys are middle aged
You motivated me bro
Yeah? Thanks!
Great video. Emanual Derman!
Bro , amazing content, keep going
Some methodologies like Elliott Wave are so difficult to back-test.
Because you backtest strategies
Elliot wave is a tool, not a strategy
@@koolkrieg thanks. Even strategies created out of it are difficult to automate back-testing out of.
Ah shit, here we go again😂😂
Report !
@@aaryanmehta4609 You can't automate EW back-testing. You have to do it manually or do several months/years of forward testing.
I'm pretty sure folks like you can't commit to that. That's why you failed. 😂
This was an awesome video thanks
thought this was a bloomberg video, great quality !
Wow, I'm flattered.
more detail would be appreciated. good video
Awesome video!!!
As a retail trader now I see why these guys don't give a profit of at least 50 percent. Now I know I have an edge.
I am Investor and trader,i like your video👍
DM me
Subbed
You won't be disappointed.
@7:02 this should be a wake up call to all technical analysts.
"There are many ways to make money in the market, they are all very difficult to find" t.a with the right statistical approach works great.
Very high-quality video! Respect!
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Awesome man keep uploading very helpful. Thanks ❤️
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Keep up the good work!
Luv ur channel its helped me think different
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Thanks Finaius 👍
Great video, Thanks
Well done & thanks!
This was such a great video. 👏
thats true. I used to laugh so hard at those "forex/trading gurus" out there that showed some lines on graph calling it "technical analysis" , those guys can't make a simple moving average having the formula in front of them.
Sadly, there are many academias, technical and math-savvy people who still aren't successful in Forex trading.
Then how can we beat the market
@@ggtl304 find a method that has an edge and spend 1 to 3 years mastering it, depending on it's complexity. Make sure you create a trading plan out of it from your years of testing and experience. Then work on a risk management strategy with realistic expectations and you're good to go.
For me, I trade with a combination of Elliott Wave theory and Quarter's theory. And I love it!
@@OlatundeAdegbola
Also basic fundamentals!
Always listen to and read what the Fed says!
Last April they cut rates & said they're not increasing for years.
I've been shorting the dollar since 🥃
@@dannybhoy2739 Yeah. Fundamentals are an important addition, especially interest rates.
what kind of person will tell their lucrative patterns to someone else?
When other people are aware of your patterns, it can be easier to be one step ahead. All financial apps have the big data of all patterns for all traders that use their platforms. Big data is different than individual best performer data.
Not sure if the case with this particular system (nothing in this video actually explained how anything worked) - but have noticed in the past certain folks tended to release them after they found out they are not as useful as they thought and can then make better and more consistent gains selling books.
Im a simple man, I see quant stuffs I click.
Great Video
This is as close as you can get to printing money!
Exactly
The reason some of these patterns work is because the algos manipulate the price and create the patterns. Jim Simmons said one time "no one is keeping any secrets, they're all doing the same thing." I've seen some intraday patterns repeat themselves over and over, touching the price levels to the penny. Coincidence? I don't think so.
I knew some HF funds do front running. I don't know about this.
yes, all you have to do is identif the pattern day
Very good video.
Amazing video
Quant is just a fancy way to say the market is timed and it is.
Week to week. Opex to opex. It is.
Nice videos you have got, thanks.
Great stuff
Ez like and subscribe, great content!
what are the statistical tests to validate the chart patterns ??? can you name a few tests ??? are there any books on it ????
Fascinating
Great content! Thanks! Can you do Citadel?
Keep watching, lol
Not a single example of a ghost pattern was shown? Why did I watch this till the end?
Great video! Thank uou
eye opening vid. what is the music at 1:00 ? i cant find it anywhere. Thank you !
music.ruclips.net/video/xZJ6jqj2SxU/видео.html
Hi, love your videos!!! Can anyone provides some materials on statistical testing? like a book or website? cheers
豆i懂哦凑
vid hyped me up without answering what that ghost fucking pattern is haha
Like before even video seen
As an economist I vehemently disagree with these claims asserting economists accepted understanding of market prices are flawed. The biggest consensus across viewpoints argues that fundamental economic assumptions and “comprehensive” models are flawed and cannot possibly be a successful tool at discrete points in time. Also, the idea that economists are unaware that a significant enough proportion of traders seek short term, and even intra-day, profit, is what is fundamentally flawed. Prices at any given time are determined by economics, which yields poor short-term predictive efficacy. Quantitative data providing statistical analysis to describe price movements, or predict irrational shocks, given available parameters is not in the realm of economics. But interpreting that information to predict the future must have an economic foundation. That’s how multi factor models work. Regardless, thank you for the cringe. I couldn’t have enjoyed it without your Ill founded claims and misinformation
so the video was a bit respectful in describing economists, and so what. Its a channel from the finance person point of view , definitely not academics
What are these patterns? Are they some sort of resonance between algo trading?
Max was here
thanks, bro
I don't mean this in a derogatory way. I wish I was that bright.
These aren't traders, they're speculators.
Pulling stunts on the markets and it's participating crowd with actions never before seen or heard of. That's speculation not trading. They didn't play by the rules or guidelines, they circumvented the rules.
Thank you
Make a video about takashi tokegawa please :)
You got a patreon link?
Bro I just came across your page yesterday ..Love the content, what is the name of the song in the background at the end? Thanks 😊
Glad you found me! It's called Ticker by Silent Partner.
Its an illusion from what i see, irrational.
Most don't know bezos worked at de shaw and got funding for amazon
why is this channel so small... it's high quality
I have only started. Thanks for your support.
Because most people are dumb as rocks and rather watch basketball highlights or gossip podcasts
This channel is serious, I tell ya
Man your channel is awesome! thanks for this.
By statistical tests does he mean hypothesis testing?