"Watch out for the Quants"

Not really.

The "quants" never sell into a drop like that (except of course for SocGen). They only buy en masse when the market appears "cheap". If for some reason that strategy fails, they just blame the losses on a "bad" market environment.

After all, it's not their money.


Quote from Digs:

Jes, then this will make it interesting when they all say SELL together...CRASH will be very quick.
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Quote from makloda:

Take Tuesday, Jan. 22, when the Dow opened... What looked to be a frightening rout was transformed suddenly and without the slightest advance warning into a huge rally as hundreds upon hundreds of gigantic buy orders, ....
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More days like these please. More like every day.
 
Quote from stock777:

I figured out exactly how these programs operate long ago, and can reverse engineer any pattern with less than 5 lines of code.
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Coming from stock777, I believe the code would be....

code:
--------------------------------------------------------------------------------
IF (McDonald's customer orders fries = Ask to supersize) THEN
GO LONG Happy Meal
ENDIF
--------------------------------------------------------------------------------
 
I can't believe that the credit suisse guy would say that, but I guess he did.

Are the quants running trading? Yes.

Can you compete with them? Yes if you are careful.

My assumption based on my experience in the business is that the majority of the "quants" are trend followers. They don't care if we go up or down. That's why the trends intraday can be so strong. Were the quants buying when we opened down the day after MLK day? My guess is no, if they were doing anything it was selling. However, then you had some real buyers or maybe our PPT come in and defend the bottom and when it was clear we could trend up for the day that was ALL the bots needed to start buying.

I have nothing against quants per se. However, they are totally running your average investor out of the market. And any of us that trade frequently (discretionary such as myself) should hope that a bunch of them get their butts kicked at some point because they are driving this market.

I am not bitter - the market has been okay for me. However, in the long run if the bots keep this daily 200 to 400 or more point swing going it will kill trading for many many people. And most of us need that other side to make money trading day in and day out.

Just my two cents on something I think about constantly.

Good trading to all.
 
Quote from makloda:

Code: 
IF (INSTRUMENT.ES.SELL_VOLUME = 5000 lot) THEN
       GO LONG INSTRUMENT.ES 10000 lot
ENDIF
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LOL !!!! I am working the same code for FDAX....:D :D :D ...of course not as near as the same volume as Jerome with SocGen...:D :D :D
 
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