Someone ask me about my view of how I use the term high-frequency trading. It seems to be a hyped up marketing term that is kind of trendy to people in to learning about one subset of algorithmic-based trading. To be honest, the only path is through the Matlab system ecosystem which includes Simulink. As we all like to see credibility of actual investment banks using it, there is a video out there of a MathWorks document to educate the power and who uses it.
As you know the last week, I’ve posted many models for my Quant elite members. Here’s the latest list of what I posted:
Simulink call put parity options trading model with C or C++ code Matlab Simulink future trading model on basis Initial Equations for Options and Futures trading Raw Equations for Options and Futures trading
How Goldman Sachs and other investment banks volatile volatility is killing their trader performance?
The small event like SNB can cause this havoc is surprising. They lost all control. People are spoon fed and slaves to volatility is dangerous to a small event like SNB. Need better healthy balance in market since traders really over react? People hold off on trading.
Not positive outlook for trading in 2015 b/c of it. They want to see where the US Fed goes.
So? Step away from this mentality and focus on assets that are hopefully not impacted by this volatility. Remember the impact these automated algos can have if they are programmed to follow these techniques.
This is all according to a Bloomberg TV interview
The Secret Recordings of NY Fed on the dirty tricks of investment banks
This came in from a local Meetup member so thank to to him:
I also thought you may be interested in the following account. Its very controversial.
“An unprecedented look inside one of the most powerful, secretive institutions in the country. The NY Federal Reserve is supposed to monitor big banks. But when Carmen Segarra was hired, what she witnessed inside the Fed was so alarming that she got a tiny recorder and started secretly taping. ”
Why hedge funds investment banks prop shops want physics to apply math principles to their quant algo research trading?
As I learn through Khan Acadeym for things like work, acceleration, particle movement, I thought this was very similar characteristics of quant research. Personally I do see a relationship but others including London Quant don’t quite agree. I want to see your opinion. so comment below.
LQ says they physcists are wanted to because they know how to build models and see through their faults as well. I find this concept interesting but everyone seems to disagree there is no relationship. What do you think? Join my FREE newsletter to see what others think
There are two camps.
The Dermans and the Sorrettes
The Dermans think that the model will break down due to the human behavior feedback loop.
The Sorrettes think that the model will approximate overall phase shifting dynamics.
I think that both are right. That is why I believe that chaos theory and tangential themes are closer to modeling the market.
In terms of physics models, there is power in analogies and a weakness too when applied to finance. But techniques in physics for understand complex systems, like quantum levels, are useful in phase transitions in complex dynamic systems - aka the market.
Paul Cottrell, MBA, ABD
This links may be useful for some of my learning
I really wish math gurus could speak plain English instead of this useless mumbo jumbo
INVESTMENT BANKS DESTROYED in this AWESOME SCARY VIDEO
We all know about Anton but he paints a dim picture of why would you want to work at an inestment bank to get fired for things you have no control over. Thanx bu go ahead to rack up that school debt for your PHD to get a job monitor watcher.
Just like Fox Financial News, CNBC needs to panic viewers about quant and high frequency trading!! Investment banks are way too smart!
What a sham. These guys want to add regulation to the free markets. Uh yeah. Sounds like they want to socialize it. Guess what guys? The investment banks are way too smart to defeat any rules. Didn’t Morgan Stanley just buy one of Brazil’s biggest hedge funds. Also, us Canadian can get almost direct links onto your exchanges with these so called high frequency trading black boxes. Also, trading methods will never be disclosed as it is way too complicated. Good luck. The mouse is always one step ahead of the cat!!