Quants --Alive and Kicking

[caementarius]

Quote from bighog:

All the science, math etc so called whiz kids always seem to forget about the "BUTTERFLY EFFECT".

Don't worry, we have made some adjustments...

 

[spounds]

If you have a method for reproducing complex adaptive systems then you are ahead of the game.
If you can forecast them...


Quote from Science Trader

Thermodynamics is the same. You can find empirical law which work very well but still can find exactly the same results starting from individual interactions between molecules. Then a plain N->infinity with some ratio kept constant and here you are. Humans are not idfferent (once their decision is taken and their behavior under certain conditions fairly reproductible).

 

[bighog]

Quants seem to have a hard time dealing with the real world once they learn all the mumbo jumbo mush mash pumped between their ears. This is from over 5 years ago and seems to still be true.

http://www.ederman.com/new/docs/risk-quants_dont_learn.html

 

[FeenixRizin]

Quote from JR-Welling:

A number of the quant models worked off the assumption that the price of housing never went down.

On that note I think it should become a standard requirement that any person who is majoring in quantitative finance to take a class in common sense 101.

common sense is impossible to program

 

[TSGannGalt]

Quote from FeenixRizin:

common sense is impossible to program

This being the last post in ET. I find this completely relevant.

Common sense is subjective and it's a major bitch to deal with.

 

[tigerwu]

The problem with quants is that they believe you can predict the future using historical data. History never repeats itself the same way.

I would like to see more philosophy majors in trading. At least the conversations will be a lot more interesting.

 

[sc85]

James Simmons is the father of quants.

 

[Random.Capital]

Quote from tigerwu:

I would like to see more philosophy majors in trading.

Quants are a dime a dozen. But a trader who can combine Derrida with phallocentric humor - now that's priceless.

 

[nitro]

Quote from caementarius:

Don't worry, we have made some adjustments...

LMAO

My favorite is the one with two white coat scientists at the chalk board. They are starring at a bunch of complex equations that trace a complex argument to the left, then in the middle of the chalkboard it reads "then a miracle happens", followed by more complex equations and line of thought to the right.

 

[ML_QUANT]

Quote from TraderZones:

Why does it take hundreds to thousands of people to come up with a limited set of (math) rules to unsucessfully model risk, as with this year's catastrophe?

Rule 1: the future may differ from the past. For example, housing prices don't always go up in the same way that a few years ago, people learned that the stock market does NOT always go up 20% per year

Rule 2: If you think the future may always be the same, see rule number 1

Wow, your level of sophistication or better said, the lack of it is amazing! Why do you insist on embarrassing yourself by showing off your naivety and shear ignorance?