How does Nassim Taleb trade?

stocon · Oct 1, 2006

I just read the book and found it interested but somewhat confusing as to how he trades. From what I gather he looks for crowded trades and then buys way out of the money options looking for the huge move. I'm sure it is proprietary, but I'm curious how one would go about doing this in some systematic way. Does anyone trade that way? How do you find your tradables? I'm sure the hit rates must be low. Comments.... thoughts ... ideas....
thx Steve

stocon · Oct 1, 2006

I found this great interview helpful

http://www.fooledbyrandomness.com/ERISKQATaleb.pdf#search="how does taleb trade"

And this at the world bank site

http://www1.worldbank.org/economicpolicy/managing volatility/contagion/definitions.html

easyguru · Oct 1, 2006

He does not trade. He closed down his hedge fund long ago or his investor withdrew money. To best of my knowledge.

psytrade · Oct 1, 2006

long volatility

easyguru · Oct 1, 2006

The book sounds brilliant but the strategy does not work. There are very few investors interested in such insurance.

taowave · Oct 1, 2006

Quote from easyguru:

He does not trade. He closed down his hedge fund long ago or his investor withdrew money. To best of my knowledge.

Not suprising..Taleb is a bitter frustrated quant with a ridiculous ego...He may have done well for a while,but he probably got smoked the last 5 years if he played the equity markets..He buys the tails and always long vol,and its not sprising he went the way of the dinosaur as vols contracted significantly the last 5 years..

He should stick to writing books ad keep to the numbers

mushinseeker · Oct 1, 2006

I don't think he needs to trade. With his credentials, (deserved or not is another issue) he is probably squirreling away lots of cash speaking in front of traidng desks for 10's of thousand a day in addition to consulting with the hedgies in Greenwich CT.

taleb31 · Oct 1, 2006

Quote from easyguru:

He does not trade. He closed down his hedge fund long ago or his investor withdrew money. To best of my knowledge.

Wrong. He is still trading and constructing systematically long volatility portfolios for institution(s).

mahras2 · Oct 1, 2006

At the trader monthly interview, he showed his tax returns as proof and I believe they all showed 7 figure income. He is also still trading based on the previously mentioned article.

Here is a link:http://www.traderdaily.com/magazine/article/2165.html

kinggyppo · Oct 2, 2006

TaoWave wrote:

Not suprising..Taleb is a bitter frustrated quant with a ridiculous ego...He may have done well for a while,but he probably got smoked the last 5 years if he played the equity markets..He buys the tails and always long vol,and its not sprising he went the way of the dinosaur as vols contracted significantly the last 5 years..

He should stick to writing books ad keep to the numbers.

I have to admit I have read some dumbass shit on this website, I have to say this comment takes the prize. Wow!!

:eek: