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The shorter the time frame, the lower you need your variance to be. Unfortunately, shorter time frames have the most variance.

It applies to everything. Crowded trades product excess variance. Variance lowers your risk adjusted return by definition (it's in the denominator). You are looking for "signal extraction" with the least amount of variance in your trade. That's where alpha comes from. Everything else is just...

Can I offer some free advice? Try to avoid the "(TSLA, FB, AMZN, NFLX, AAPL) garbage and focus on stuff that NO one is watching or talking about. The ACD signals are MUCH cleaner. When I would find a name I liked I would go on twitter and search for the ticker. If no one was chatting about...

That's not what these guys are doing. Or what they are looking for. I know, I use to recruit them, much to my detriment. They were punters looking for leverage. MM style trading is very vol dependent so all our MMs were vol traders and of course vol traders fit in that frame work. That is...

The vix got crushed on that news. One less Russian in the world apparently is good for a lower VIX

I think he was referring to their style. As you know Bob, we had a LOT of retail type traders at VTrader. God knows how many of them I had from ET. Disaster.

I guess you could call it that. LOL.

That is where the alpha is. There is no alpha putting on directional spreads in options and more importantly there is no feasible way for firms to monetize that. Back in the day when I ran our Chicago office that allowed retail guys to come in and do just that, we never made a dime on that...

Here are my thoughts. I think the bond market is starting to feel that the Trump stimulus might be a little over blown. For one, there is talk in the House now that Paul Ryan will block the stimulus and might even block the tax cuts. One of them has to give. We cannot cut taxes AND do fiscal...

This is actually a very insightful post. Well done.

No, no contrast. Here is the difference. Your generation (and probably mine) came out of school as you pointed knowing 10% of what kids today know. For example, I took a "typing class" in high school. Yet what we "did" with that limited ability was amazing. Today, kids can program, study...

One of the more fascinating things going on in the market right now which I don't hear many people talking about is the sharp steepening of the 2/10 and the flattening of the 10/30. Very sharp differences. This is actually very bullish macro speaking. What it's saying is that banks will be...

You would be surprised how many "new graduates" have 5+ years of programming experience. Kids today start learning Python and R in high school and by the time they get out of college they may actually have 5 to 10 years already in those languages. I don't know exactly what Sle is looking for...

He is in NY. Obviously you can't put everyone or even most people in a basket. I do think there is a subset of your generation who is working very hard to make that "image" stick. LOL. But there will always be smart and hungry guys and girls out there willing to work their ass off to make it...

Guys he is not looking to be a MM.

OK. That structure doesn't really exist anymore. In fact, even when it did exist, and I was a member of one, in order to join our JBO, you HAD to be a market professional and prove it meaning you were licensed, worked in the industry and were well capitalized. We certainly would not take...

That doesn't really exist anymore. Can I ask why a prop firm? Is it just capital? Because spreads require almost no margin. Is there some other thing you are looking for like automation or software?

They are mostly HFT and MM. Is that what you are looking for?

Here you go Sle.

Gold and Silver....ouch.