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Don’t be a BIG BABY! Why I think you can kill it in the world of quant and automated trading with even HFT

(Last Updated On: March 24, 2014)

Don’t be a BIG BABY! Why I think you can kill it in the world of quant and automated trading with even HFT

This just came in via today’semail:

I’ve seen both the trading videos before (except the plane one).  I have mixed feelings on the field myself. I work for a small fund in New York and I know from what I’ve seen that its no longer easy to make money in this field. Even DE Shaw is taking blows now and I feel like the money is much more centralized. I find trading fascinating, I really do. I love talking about it and studying it and everything. However, trading all comes down to one thing: are you making money.  I don’t accuse HFT of causing the markets to be so difficult as much as I feel it’s because you’re literally competing with everyone now. At one time, if you could get into the elite circles and work at a firm on wall st or at the exchange, you could make big money just by being there. Then when things went electronic, you could make money if you knew technology/math. Now even that’s saturated. Where is the edge left?  Now you have to choose true value in the long term or maybe do some risky short term speculation. These markets have matured. In a way, I feel this is good markets are like this now. I don’t condone order flashing and the other things which electronic firms do, but I hope/think that over time regulation will come and help this. The bottom line and the reason I posted the comment I did is because I think the opportunity for someone bright and driven to come into trading and make good money with hard work,whether that be someone who just loves finance all the way to someone who aggressively studies math, science and technology…..that opportunity is just about gone. The profitability of funds now is pretty lackluster and that’s for the really big names out there. I don’t think it’s a great field to get into anymore, at least not if you’re chasing money. Probably private equity and venture capital are better paths for those. I don’t think the field is really competitive compensation wise when compared with regular corporate salaries anymore. Quants at funds are really just worker bees and the managers and investors are really the ones that make money there. All this has driven so many I know completely out of trading and out of finance into other fields like technology. I just get kind of irate when I hear people talk BS about trading and big money. They don’t know about the industry

Sorry to hear your views. Yes people are making big money through these.You just don’t hear about it any more b/c of the hype you elude to. The HFT firms are hurting due to the competition you mention. If you have a large arsenal of strategies that can self adapt to market conditions in real time, I see no reason why you cannot do it but it needs to be done secretly. I have community I deal with but I most are high level where details are revealed. Any real person who sells you a robot to make money is full of crap. Don’t believe it.

Yes you can make money with your own ideas with your own technology. This is what I deliver. The more dependencies the drop, the more processes you control and own, the better your long term future will be. The lazy people will fingers up their asses are what we call suckers and dumb money sales people will pray on. GO for it if you want your future to fail.

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Yes you need to innovate and yes t=you need to be a programmer. Eliminate all those dependencies NOW! Take control of your future and own it. So in the end, YES you can make money in this automated trading business which could evolve in to a high frequency trading operation if you succeed.

 

Here is that email delivered”

Why do these ex HFT guys need the media attention?

 

Here is a another ex HFT trader complaining about how bad it is in this video – See more here

Another fine demo:

 

BBC shows how Bayesian quant math helped find another lost plane called AIr Malaysia MH370 – See more here

An oldie but goldie but do see the highlight of the algorithms mentioned:

 

Ever want to watch how the internals of Citadel the Hedge Fund operation works? Watch this video – See more here

Let me know if you find these links helpful

 

Bryan

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NOTE I now post my TRADING ALERTS into my personal FACEBOOK ACCOUNT and TWITTER. Don't worry as I don't post stupid cat videos or what I eat!

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