Jim Simons’ Trading Strategies Makes 66% A Year

Whoa! What an article for this explains Jim Simons Trading strategies are used in deep detail. Here are the highlights but thanks to NYC Contact for sending this

quantifiedstrategies.com/how-jim-simons-made-66-a-year-by-using-quant-strategies/

From this article:

We know they use this process when they started:

Find a pattern that seems like an anomaly.
The pattern must be statistically significant. It must have many trades and signals.
Don’t override the computer (you obviously can’t simulate or backtest that).
“There’s no data like more data”.
Don’t ask why. There are so many variables to explain an outcome, and most traders underestimate the vast variables that influence asset prices. No one really knows why. Thus, it doesn’t make sense to ask “why”.
Presumably, the win ratio is pretty low at about 51%.
Simons and the Medallion Fund conceal their trades. If an asset shows an anomaly at 11 AM, they conceal their trades by not buying precisely at 11 AM.
They use leverage because of their extreme diversification. Leverage is the main reason for the returns.

Author’s interpretation of this article

My lessons and takeaways, in just keywords, are these:

Trade often
Trade many markets to get uncorrelated returns
Diversify to different markets and time frames
Many data points are required to make a meaningful trading/investment strategy
Aim for a “market neutral” portfolio
Don’t worry about “why”
Scale in, scale out
Math trumps intuition
The logical strategies are arbed away
Mean reversion is the lowest-hanging fruit
Leverage bites
Most quant traders fail

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!

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