Category Archives: Hedge Fund

Math Whiz Trades Without Humans to Make $700 Million Fortune

Another mathematician gone trader success story. This ones involves who built a net worth to $700 in short order. The firm is called XTX out of London with math and programming whizzes who do market making. The other usual story is they have quadrupled in size since 2015. See the article here.

https://www.bloomberg.com/news/articles/2019-12-05/math-whiz-trades-without-humans-to-build-a-700-million-fortune

Also, I am hoping to get new Quant Analytics launched this week with partial signals working from MotiveWave. This will include live trading with forex and crypto starting in a few days. This is crucial to start rebuilding a track record with this new platform I have introduced to you all in the last few weeks.

You better jump on the initial Quant Analytics now before the price jumps up in coming weeks. I might even start promoting later in the week as well.

I will also be doing a webinar tomorrow at 12 PM Eastern Daylight Time. The topic will the latest discoveries with MotiveWave Round 2.

This was inspired from this video of last week which is listed below.

Here are the login details for tomorrow:

Bryan Downing is inviting you to a scheduled Zoom meeting.

Topic: Latest discoveries with MotiveWave II

Time: Dec 9, 2019 12:00 PM Eastern Time (US and Canada)

Join Zoom Meeting

https://zoom.us/j/998605736?pwd=TWpXV1ViWkJYVjZnM2RYTk9SbnUyZz09

Meeting ID: 998 605 736

Password: 761994

One tap mobile

+16465588656,,998605736# US (New York)

+16699006833,,998605736# US (San Jose)

Dial by your location

        +1 646 558 8656 US (New York)

        +1 669 900 6833 US (San Jose)

Meeting ID: 998 605 736

Find your local number: https://zoom.us/u/ac8lNIa1ua

Thanks Bryan

HOW DO YOU START A PROFITABLE TRADING BUSINESS? Read more NOW >>>

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!

Scan with multiple indicators for optimal performing trading instruments

I show how to save timie in coding where you can combine multiple indicators for instant analytics of optimal performing instruments

If you like these topics, join to get some tech trading advice
https://quantlabs.net/book/

Get the ELITE now for 2 year term with Analytics. After Cyber Monday, this will be 1 year with no Analytics!

HOW DO YOU START A PROFITABLE TRADING BUSINESS? Read more NOW >>>

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!

Rise and Revolt at Renaissance Technologies and Jim Simons plus Black Friday sale

Rise and Revolt at Renaissance Technologies and Jim Simons

(Last Updated On: November 26, 2019)

Here is a Podcast episode from the Wall St Journal. This about the early days of Renaissance Technologies and early days of Jim SImons.

the latest book about Jim Simons.

Black Friday sale is on

Motivewave the trading platform is having its 30% off sale.

MOTIVE WAVE SALE

Also remember that my quant elite Membership term becomes annual after cyber Monday. I will also be removing the Analytics feature as well

Quant ELITE Service

Thanks Bryan

P.S. The advanced progress with MotiveWave is amazing. I will send out more info for those interested in this amazing trading platform

HOW DO YOU START A PROFITABLE TRADING BUSINESS? Read more NOW >>>

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!

Rise and Revolt at Renaissance Technologies and Jim Simons

Here is a Podcast episode from the Wall St Journal. This about the early days of Renaissance Technologies and early days of Jim SImons.

the latest book about Jim Simons.

https://www.wsj.com/podcasts/the-journal

Thanks to the person who sent this to me.

HOW DO YOU START A PROFITABLE TRADING BUSINESS? Read more NOW >>>

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!

Ray Dalio Predicts The Next Big Market Crash

A little while ago, Ray Dalio said the world was mad. He also goes into further detail in this video

About: Raymond Dalio is an American billionaire investor, hedge fund manager, and philanthropist. Dalio is the founder, Co-Chairman and Co-Chief Investment Officer of investment firm Bridgewater Associates, one of the world’s largest hedge funds. Bloomberg ranked him as the world’s 58th wealthiest person in June 2019.

 Click here for the Ray Dalio interview video

See below for the latest analysis in my cryptocurrency trading bot.

Question: Are you willing to pay for discounted long term Analytic subscription terms? Let me know.

If you have not been reading these emails, I have done revamped the store to my old reactivated Shopify store. I am sure you are not interested in the benefits, so I will just post the the highlighted links:

Interative Brokers 4.5 hour Workshop Bootcamp

$37.00

Python Algo Trading Infrastructure with Crypto Currency

$297.00

Quant Analytics 3 months

$297.00

Thanks Bryan

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QuantLabs.net 3583 Sheppard Ave E #307 Toronto, Alberta M1T 3K8 Canada

HOW DO YOU START A PROFITABLE TRADING BUSINESS? Read more NOW >>>

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!

Did this research paper kick off Renaissance Technologies?

From the research paper authored by Peter Brown and Robert Mercer while at the IBM Watson Research Center in the early 90s.

http://www.naxa.com/downloads/J93-2003.pdf

Interested in this type of topic? Check this out

Screen software topics
Learn how to build custom trading bots here

It seems the initial 5 models are based on Bayes Theorem for probability analysis.  They use a series of analysis to compare one against another (.e.g French vs English) to find patterns to see how connection relate with each other. This is for translation purposes.

P

Pg 7: We generally follow the common convention of using uppercase letters to denote random variables and the corresponding lowercase letters to denote specific values that the random variables may take. We have already used I and m to represent the lengths of the strings e and L and so we use L and M to denote the corresponding random variables.

As stated here by James Baker, https://www.quora.com/What-are-the-investment-strategies-of-James-Simons-Renaissance-Technologies-I-understand-he-employs-complex-mathematical-models-along-with-statistical-analyses-to-predict-non-equilibrium-changes

We need to understand the corresponding random variables. There is mention of Lagrange multipliers and normalizing predictive data.

Auxiliary functions are used as well to generate desirable parameters using extrema/maxima analysis. Conditional probabilities are used as well. On pg 276 there are translation, distortion and fertility probabilities.


Page 282: Model 5 is a powerful but unwieldy ally in the battle to align translations. It must be led to the battlefield by its weaker but more agile brethren Models 2, 3, and 4. In fact, this is the raison d’etre of these models. To keep them aware of the lay of the land, we adjust their parameters as we carry out iterations of the EM algorithm for Model 5. That is, we collect counts for Models 2, 3, and 4 by summing over alignments as determined by the abbreviated S described above, using Model 5 to compute Pr(ale, f). Although this appears to increase the storage necessary for maintaining counts as we proceed through the training data, the extra burden is small because the overwhelming majority of the storage is devoted to counts for t(fle ), and these are the same for Models 2, 3, 4, and 5.

Page 283 shows the number of translations done which goes into the millions to determine a small subset of useful words. EM algo used with maximum likelihood.

Pg 283 Although the entire t array has 2,437, 020,096 entries, and we need to store it twice, once as probabilities and once as counts, it is clear from the preceeding remarks that we need never deal with more than about 25 million counts or about 12 million probabilities. We store these two arrays using standard sparse matrix techniques. We 283 Computational Linguistics Volume 19, Number 2 keep counts as pairs of bytes, but allow for overflow into 4 bytes if necessary. In this way, it is possible to run the training program in less than 100 megabytes of memory. While this number would have seemed extravag…

Page 293 speaks of Viterbi algo training:

We have already used this algorithm successfully as a part of a system to assign senses to English and French words on the basis of the context in which they appear (…

Page 297 table of notation

Appendix B has summary of models. Note especially Log-Likelihood Objective Function.

Note page 300 iterative improvement.

In order to apply these algorithms, we need to solve the maximization problems of Steps 2 and 4. For the models that we consider, we can do this explicitly. T

Page 301: Parameter Reestimation Formulae: In order to apply these algorithms, we need to solve the maximization problems of Steps 2 and 4. For the models that we consider, we can do this explicitly.

Equation (73) is useful in computations since it involves only O(lm) arithmetic operations, whereas the original sum over alignments (72) involves 0(I m) operations.

Download entire collection including some old interview with Jim Simons and rare audio speech of Peter Brown and Bob Mercer

HOW DO YOU START A PROFITABLE TRADING BUSINESS? Read more NOW >>>

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!

5 Lessons From the Greatest Traders Jim Simons book

Since the announcement of a book about the Renaissance Technology founder, It is a week about Jim Simons. The thing is that he is easily the most successful trader or investor of our time. Someone went out and wrote about some of the lessons learned  from this book.

Out of all the articles I have seen over the last few weeks, this is easily the most useful.

If you have not been reading these emails, I have done revamped the store to my old reactivated Shopify store. I am sure you are not interested in the benefits, so I will just post the the highlighted links:





Interative Brokers 4.5 hour Workshop Bootcamp

$37.00

https://quantlabs.net/interactivebrokers/

Python Algo Trading Infrastructure with Crypto Currency

$297.00

Quant Analytics 3 months

$297.00

Thanks Bryan

HOW DO YOU START A PROFITABLE TRADING BUSINESS? Read more NOW >>>

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!

Goldman Sachs lose top traders to hedge funds

I have put together some articles on what is happening with Goldman Sachs as more people are leaving. Here are some reasons from the first article:

Junior traders have been complaining of a new approach at Goldman Sachs. As the firm focuses on developing stable streams of income from ‘platform’ businesses, volatile trading revenues have gone out of fashion. Insiders complain there’s less interest in generating alpha and more of a focus on pure market making, meaning alpha-generating traders feel they’re better off on the buy-side.

https://news.efinancialcareers.com/uk-en/3002624/goldman-top-traders-leaving-for-hedge-funds

Many seem to be going to Bluecrest but never ask me why. Here are the other articles leading into Goldman is moving into platform based businesses which make sense:

https://news.efinancialcareers.com/us-en/311902/real-reasons-junior-traders-leaving-goldman-sachs

https://news.efinancialcareers.com/uk-en/3002409/goldman-sachs-technology-jobs

I am still looking for feedback from people on this new physical book I am thinking of self publishing. As said, a darft is in place but I am not willing to move forward unless people comment on what more they would like to see in it. This book proposes to speak about 4 main topics:

  1. Your retirement and future taxes
  2. How to hire a coder
  3. Rise of Bitcoin and crypto currency

It generally will speak of why the benefits of algo trading can help secure your unclear future.

As said, let me know by commenting or responding about this. I will simply quash the idea if I just see clicks and social media likes.

Thanks Bryan

HOW DO YOU START A PROFITABLE TRADING BUSINESS? Read more NOW >>>

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!

Do hedge funds actually find alternative data useful ?


You can find the article on Quora which is pretty valid as I explain in this video. Also, I hint at how Ren Tech uses these alternative data sources for trading edge for impressive annual returns

https://www.quora.com/Do-hedge-funds-actually-find-alternative-data-useful

HOW DO YOU START A PROFITABLE TRADING BUSINESS? Read more NOW >>>

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!

2 Lessons I learned in my live forex vs cryptocurrency webinar today

I learned these 2 items that I should be logging and considering for future trading logic in my crypto and forex algo trading bots:

Standard deviation

Derivative of raw closing price could be fed into the machine learning as input

Neat. I learned this from someone on my private chat server. Now  I learned even more someone in today’s webinar. This video playback will be part of my ELITE membership as well. This is only place you can watch it on demand now.

AS YOU KNOW THIS CHEAPEST GOING UP REALLY REALLY SOON!

Get more info here

Introduction to Quant Elite Membership

 

HOW DO YOU START A PROFITABLE TRADING BUSINESS? Read more NOW >>>

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!