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It would be an interesting study to see how well does the default probability implied by the N-year average credit spread compare to the realized default rates over that period, i.e. P(t0, tM| implied) - R(t0, tM | actual). The studies I've seen almost always use ratings and ratings transitions...

From the perspective of an employer there is a benefit to hiring people with diverse backgrounds. The firm already has the people with industry expertise and it makes sense to add people who can think outside the box. From the perspective of the OP, who has no market background, no experience...

I was not trying to insult you, but it certainly sounds like you are envious of the people in the institutional quant finance. Certainly, now you are going to argue loudly that you are not :)

Oddly enough, lately I got more involved in physically difficult climbing like bouldering. Must be the fact that anything alpine is a serious trek from the NYC while there is pretty awesome bouldering an hour or so north of the city.

Could have been a real money hedger of some sort. Today's VIX trade was bigger and made just as little sense, IMHO.

First of all, the financial math does not work out. A first year quant analyst is probably taking home 120-150 base plus 50-100 bonus depending on how good you are. Assuming a set of personal strategies that generate 20% ROC with 2-3 Sharpe (a very good setup indeed), you need around a million...

Those grapes, man, so sour :) Social aspect aside, it's hard to dispute that expected value in institutional finance beats almost every other industry.

Probably because working for a fund would pay better? :)

PhD in You don't need a PhD to get a job in systematic trading (please don't call it algorithmic unless you want to be developing execution algos). Asking for a PhD is mostly a way to filter out dumb people (especially for recruiters who can't tell if candidate has the skills or the brains).

That's the person I knew, yeah. The article is surprisingly respectful, usually when someone dies in the mountains it's like "what was he/she thinking?"

In the winter or in the summer? Winter there is no joke. Someone I knew actually died trying the Presidential Traverse in the winter a few years ago :(

i had an interesting argument about what would be better for a retail size systematic trader - cross-sectional strategies (across multiple stocks or assets) or single asset longitudinal (where you trade a single or few assets). So which one rocks the boat for you and what are your reasons for...

What, you can't strangle a grizzly with your bare hands? Pathetic!

Meh. Real men don't need spears :) seriously, though, all those small-dick dudes that need to hunt - could they do it without weapons? are they in shape to do that?

We should go climbing at some point!

Really? What type of climbing do you do? I do it all, from bouldering to alpine, it's so unusual to meet traders that are into mountain sports, especially climbing

Unless that "everyone" is trying to sell you something, what is the incentive for them to reveal their track records or any other information? Ps. Realized that it's in the context of people selling trading strategies - makes sense. Of course, track records can be pretty deceiving too

Why is that? Or are you talking specifically in the context of your particular strategy?

People walk in and pitch stuff to funds all the time. Sometimes a hedge fund would take a person off the street and give them capital to trade but that's a pretty rare occurence. I would say that in 99% of cases these people turn out to be cranks and in 1% of cases talented guys that could use...

Everyone but Sweet Bobby. Hedge Funds use them as a cheap source of leverage and to engage in limited downside bets. Insurance companies use shorter-dated options to hedge index annuity obligations (there is a separate class of exotic options called "cliquets" or "ratchets that's designed for...