The Renaissance Technologies model has been resolved.
- Thread starter LargeTrader
- Start date
Read my last post. It will explain more than any video.
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On the Legal Record in 2007... Statements from FORMER Ren Tech top advisor employees... who became extremely successful PHD finance math quants after leaving Ren Tech.
Quote...
Renaissance is aggressive about maintaining that edge, as an ongoing legal battle shows. The firm recently settled a high-profile lawsuit against hedge fund Millennium Partners LP, which hired two physics Phds fired by Renaissance in 2003 for refusing to sign non-compete agreements.
The two physicists, Pavel Volfbeyn and Alexander Belopolsky, have not settled and contend that Simons is using the lawsuit to intimidate existing Renaissance employees.
In its complaint, Renaissance said that the knowledge taken by Volfbeyn and Belopolsky could have earned them "hundreds of millions" using intellectual property that it had spent a fortune amassing. The two fired physicists wrote in a statement provided by their lawyer that Renaissance's alleged secrets "are nothing more than general ideas that are well known to people familiar with statistical arbitrage and quantitative finance" and went on to say that this could hardly cause direct financial damage to Simons...
For his part, Kapner views Renaissance's aggressiveness as something seen to a greater or lesser degree at most black box trading firms. "They're all secretive because they think their models are better than other people," he said. The extent to which overconfidence in their model's superiority translated into excessive size and leverage by quant funds was evident in the steep losses of the past few weeks.
"People (re: Ren Tec) are just losing sight of what they were doing," he said. "We used to have a saying on the trading floor: the greedy become the needy."
End Quote...
Here is Link to the August 2007 article this quoted info is based on...
https://www.arezzotrade.com/wall_street.php
Quote...
Renaissance is aggressive about maintaining that edge, as an ongoing legal battle shows. The firm recently settled a high-profile lawsuit against hedge fund Millennium Partners LP, which hired two physics Phds fired by Renaissance in 2003 for refusing to sign non-compete agreements.
The two physicists, Pavel Volfbeyn and Alexander Belopolsky, have not settled and contend that Simons is using the lawsuit to intimidate existing Renaissance employees.
In its complaint, Renaissance said that the knowledge taken by Volfbeyn and Belopolsky could have earned them "hundreds of millions" using intellectual property that it had spent a fortune amassing. The two fired physicists wrote in a statement provided by their lawyer that Renaissance's alleged secrets "are nothing more than general ideas that are well known to people familiar with statistical arbitrage and quantitative finance" and went on to say that this could hardly cause direct financial damage to Simons...
For his part, Kapner views Renaissance's aggressiveness as something seen to a greater or lesser degree at most black box trading firms. "They're all secretive because they think their models are better than other people," he said. The extent to which overconfidence in their model's superiority translated into excessive size and leverage by quant funds was evident in the steep losses of the past few weeks.
"People (re: Ren Tec) are just losing sight of what they were doing," he said. "We used to have a saying on the trading floor: the greedy become the needy."
End Quote...
Here is Link to the August 2007 article this quoted info is based on...
https://www.arezzotrade.com/wall_street.php
You're welcome people...and I'm doing all this from the sidewalk lol.
Are you saying you are homeless?
If you have to lease or finance a Lambo then you can't afford it.
So I see you're like Elon Musk, only without his brain. You just like to talk.Yes they are acting all smarmy, but I think they are throwing everyone a red herring, because they may have started out with a math based methodology, but in the end they just settled on simple pattern recognition combined with low fees and high frequency. Basically find a pattern, and then compare it with 100 other similar patterns and then extrapolate from that what anomalies were present in the outliers. This is similar to what Tudor did combined with EW, except with more data. I was surprised Tudor shared their technique...I think they said they regretted it and tried to have it removed from the documentary. Anyway all of this is baked into EW so you can save yourself all the quants.
So in summary, the market is in a state of determinism, and if you want to make money you just have to align yourself with that pre-determined outcome. The market is not affected by the news or earnings reports or fundamentals etc. as those will only facilitate the already pre-determined outcome. I think Simon or someone giving a lecture said they used fractals and ignored all news and earnings reports.
Case in point. In NOV2021 The extension wave for bitcoin was showing its 1.618 fib could take it down to 13-16k. This was forecastable in Nov2021 when we were just at ath's! This was more than a year prior to the FTX scandal that eventually became the icing on the cake for that capitulation. I'm sure other news aligned to facilitate the already pre-determined decline along the way.
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Doesn’t he sometimes wear a Lacoste polo?
Are you implying he has the money??
So I see you're like Elon Musk, only without his brain. You just like to talk.