Reading "Dynamic Trading" by Taleb...am i supposed to understand any of it?

SunTrader · Dec 1, 2019

destriero said:
Made no money with Empirica... his #2 goes off on his own and shorts subprime and makes $600MM. Fiction has to make sense.

Yup.

.sigma · Dec 3, 2019

Dynamic Hedging is the bible of option theory.

Trading Volatility by Benett is probably the heaviest options book.

and Wilmott's Quant FInance book is very advanced shit

poorloser · Dec 3, 2019

.sigma said:
Dynamic Hedging is the bible of option theory.

Trading Volatility by Benett is probably the heaviest options book.

and Wilmott's Quant FInance book is very advanced shit

That's interesting. I always see Natenberg recommended as the bible, and then Hull as the in-depth must-read. I'm currently making my way through Hull, hoping to get something valuable out of it as a retail trader.

newwurldmn · Dec 3, 2019

destriero said:
Made no money with Empirica... his #2 goes off on his own and shorts subprime and makes $600MM. Fiction has to make sense.

I always thought that Universa’s returns as described by the financial press were pure fiction.

destriero · Dec 3, 2019

newwurldmn said:
I always thought that Universa’s returns as described by the financial press were pure fiction.

Probably. Probably as much as RenTech's fantasy.

newwurldmn · Dec 3, 2019

destriero said:
Probably. Probably as much as RenTech's fantasy.

You think medallion returns aren’t real?

destriero · Dec 3, 2019

newwurldmn said:
You think medallion returns aren’t real?

Correct.

nooby_mcnoob · Dec 3, 2019

destriero said:
His wife is worth $25MM.

I thought he was gay...

destriero · Dec 3, 2019

.sigma said:
Dynamic Hedging is the bible of option theory.

Trading Volatility by Benett is probably the heaviest options book.

and Wilmott's Quant FInance book is very advanced shit

I trade with a (former) PHYS professor from unimelb. I can hear him laughing hysterically at your comment re: "Dynamic Hedging." Good times.

eternaldelight · Dec 3, 2019

destriero said:
Correct.

Oh snap! I was reading an excerpt from "The Man Who Solved the Market" and it seemed a little fishy... "Astronomers, who are accustomed to scrutinizing large, confusing data sets and discovering evidence of subtle phenomena, proved especially capable of identifying overlooked market patterns. Elizabeth Barton, for example, received her PhD from Harvard University and used telescopes in Hawaii and elsewhere to study the evolution of galaxies before joining Renaissance." Then on the same page Robert Mercer says they have a 50.75 percent win rate. Maybe he was joking though. Seems pretty low unless they're doing mostly high frequency trading which I don't believe is the case... I'm new to all this though. Care to say anymore?