Quant meltdown danger growing

Learn the Secret

Get  our 2 Free Books

Get these now which land directly to their inbox.
Invalid email address
(Last Updated On: September 12, 2015)

Quant meltdown danger growing

I think I said it before about quant robots:

“This is made worse by the fact that the increase in algorithmic trading means that a small number of firms may account for a large proportion of trading volume. When this happens quant-driven hedge funds are their own worst enemies — it’s the market equivalent of the Tragedy of the Commons…….

With this in mind, it shouldn’t come as a surprise that before the market meltdown there were concerns about crowded trades and stern warnings that it was just a matter of time before the system went to hell in a hand basket.”


Robotic selling by quantitative investment funds tuned to volatility and price trends contributed to last month’s losses in U.S. stocks and is only about halfway completed, according to a JPMorgan Chase & Co. strategist.

While selling by the first is “largely out of the way,” trend followers and risk-parity users have more to do, Mr. Kolanovic wrote: as much as $60-billion for the former and the rest of the forecast related to the latter.

“We expect elevated volatility and downside price risk to persist,” Mr. Kolanovic wrote. “In our view, the risk/reward for equity investors remains in favor of waiting, rather than being fully invested until there is more clarity from macro data and central banks.”


These articles are listed here:


These articles highlight my point remember. Check out my previous article at:

Trend following quant robots overdone

Have you seen how I was able to push Redis? I will say it was a close one

Lesson in Pushing Redis to its limits


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!
This entry was posted in Quant Analytics and tagged , , , on by .

About caustic

Hi i there My name is Bryan Downing. I am part of a company called QuantLabs.Net This is specifically a company with a high profile blog about technology, trading, financial, investment, quant, etc. It posts things on how to do job interviews with large companies like Morgan Stanley, Bloomberg, Citibank, and IBM. It also posts different unique tips and tricks on Java, C++, or C programming. It posts about different techniques in learning about Matlab and building models or strategies. There is a lot here if you are into venturing into the financial world like quant or technical analysis. It also discusses the future generation of trading and programming Specialties: C++, Java, C#, Matlab, quant, models, strategies, technical analysis, linux, windows P.S. I have been known to be the worst typist. Do not be offended by it as I like to bang stuff out and put priorty of what I do over typing. Maybe one day I can get a full time copy editor to help out. Do note I prefer videos as they are much easier to produce so check out my many video at youtube.com/quantlabs