Be very aware of the Goldman Sachs quant bomb be very very aware
Seriously, I just got this sent to me from a member which is on the paid FT side. You need to subscribe to it but I will say this, Goldman Sachs had to be big time apologize to their clients over this. It happened in 2007.
What became known as the “quant quake” subsided in a week and was largely contained within the computer-powered investment industry. It was soon overshadowed by the global financial crisis. But it scarred a generation of financial scientists on Wall Street. Even Renaissance Technologies, the legendary hedge fund co-founded by cold war codebreaker James Simons, suffered painful losses, and it nearly obliterated Goldman’s QIS.
“All this worked academically, and for a long time it worked in practice, and then all of a sudden you have this horrible event,” Mr Chropuvka says. “It was the most humbling experience of our lives.”
And now a decade later…for me I am very well aware of having a fully balance analytical system. I don’t use exclusively one way of fundamental, technical analysis, quant, and soon machine learning/AI. I would strongly advise the same you do the same!
Thanks to this member who sent this out to me!
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!