If you are a quant and wonder what the last step is

[nitro]

Magicians And Mathematicians

http://www.wilmott.com/blogs/paul/index.cfm/2008/12/12/Magicians-And-Mathematicians

Imo, this is probably the single most important insight that keeps most quants from also becoming traders. Taleb has been saying something like this for a while, but he is not as insightful as the presentation of this article.

BTW, I understand the difference between frequentists and bayesian statistics, so don't make that objection to me.

 

[timmyz]

this is why the wall street firms stick the vast majority of these people in the back office while the "dumb" MBAs work in the front office.