Looks like Victor Niederhoffer blew up again
- Thread starter VictorBustoAgain
- Start date
it is a regular old saw on ET. those who can't win on the facts personalize.
surf, you're right back where you left off...why not put your time in the fund stuff (instead of et harASSment) and do an open bar to woo some of those fla HF rejects.
Latency arbitrage and political clout?
It's pretty sad that a guy goes from legit stat-arb to a dime put addiction. That being stated; most of his gains were padding from selling puts in a roaring bull mkt. So how much of his performance was due to stat-arb? I suspect it's very little. Matador was basically an "always in" put writing program. And yeah, my brother was in Matador.
Very true but there is a deeper problem than this even. There is something wrong with the basic mathematics of probability. This has been shown in many different ways, but a couple of examples:
there are 100 year floods more often than they should occur and no Virginia it is not due to global warming.
A 22 sigma move in the markets should not have occurred in our lifetimes.
As a consequence, almost all traders bet too much on single trades.
DE Shaw, Appaloosa, RenTech, Third Point, Bridgewater, Omega, Tudor, Millennium, Baupost, etc.