Tag Archives: principles

Paul Wilmott: Principles and Tools of Quant

Paul Wilmott, Principles and Tools of Quant

From the CQF, note that I would use the logo but their lawyers would send more letters of ceast and desist to me

Dr. Paul Wilmott, Principles and Tools of Quantitative Finance

In this 30-minute video, Dr. Paul Wilmott provides an overview of asset allocation, covering:

 

  • Risk and Return
  • Modern Portfolio Theory
  • Capital Asset Pricing Model
  • Arbitrage Pricing Theory

 

http://www.cqfmedia.com/videos/prmny1ju15-form.html

(thanks to the NYC Contact for sending)

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Why hedge funds investment banks prop shops want physics to apply math principles to their quant algo research trading?

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?
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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.



Sincerely,
Paul Cottrell, MBA, ABD

 

 

This links may be useful for some of my learning
https://www.quantnet.com/threads/applications-of-greens-and-stokes-theorems-in-finance.3388/

I really wish math gurus could speak plain English instead of this useless mumbo jumbo
http://mathoverflow.net/questions/123227/is-there-a-statistical-interpretation-of-greens-theorem-stokes-theorem-or-th

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!