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You don't think these people understand that markets are non-stationary and that market regimes could potentially kill their alphas?

Well, that's true about almost every style out there, be it long-short, global macro or anyone else. The guys that do well consistently are usually pretty small and exploit a variety of capacity constrained opportunities, once they get big they lose their edge.

I am pretty sure you do mean the people I mean :) As I said, I am not a stat arb trader but understand the space well enough. A lot of people seem to have misconceptions about what stat arb is and how it's been transformed. How about this - let's not call it "stat arb", let's call it quant...

When Occupy Wall Street was still a thing, a buddy of mine and myself went there to represent a "union of market arbitrageurs". He was carrying a sign "correlation traders are good people" and I had a placard with "volatility is for everyone".

Well, lucky guy and probably was well prepped for such an event by kissing the managements behinds in the prior months. If he was less politically talented, he'd be looking for a job despite being "still up on the year".

A broker in general takes zero risk, she's simply executing your trade on the exchange or matches you against another client (not in options, though). Most probably (almost definitely in the case of options trading) the other side of the trade is an options market maker who does assume the risk...

First of all, it's not really true, as statistical arbitrage in it's classical form pre-dates the whole data science revolution. This said, plenty of quant PMs/shops have jumped onto the big data train once their core strategies started to falter. As to data not being information - well, some...

Well, this time it does feel different as you do see a fair number of stat arb players (which is what most people mean when they say quant) having several poor years in a row and then have October as a final kick in the nuts. The only star arb guys that seem to have done more or less OK are the...

I made the list, right? :)

I am happy I made it. Yay!

He goes on to say "I had no role in taking away that property. So I had no sense of guilt." As I said, it has been rehashed a million times.

Oh, for crying out loud, here is the whole chain of that bullshit: https://www.mediamatters.org/research/2017/09/01/long-debunked-lie-george-soros-was-nazi-collaborator-resurfaces-thanks-dinesh-d-souza/217826

I have seen it before. There is literally nothing there that would suggest that.

What exactly does he say that makes you call him a Nazi collaborator?

It's been a great month for the VIX book and a horrible month for some other strategies, so I feel your pain.

That particular conspiracy theory has been debunked so many times, yet it keep coming up. He was 14 years old and was an errand boy for the Jewish council - once he realized what's going on (*) he quit and even warned some people. For what it's worth, brining it up does not say good things about...

Nah, just mixes it into his Passover cakes

Yeah! He also pays dogs to attend protests and apparently can communicate with Satan :confused:

Could you elaborate why do you think fixed delta limit (i.e. hedging when your delta exceeds a limit) is worse than hedging at fixed time intervals (i.e. observing delta say every day and covering it)? Well, your hedging results change a lot depending on what volatility you are using to...