What is Quant Trading?

[volpunter]

I have an opinion on things I claim expertise. I have worked as quant trader for more than a decade and now run my own fund. I worked my butt up to the top academically and then for more than 13 years professionally as well. I think I have direct and related experience to talk on this topic which does not seem to be the case with you and your TA friends. Hate me as much as you like but suggesting in the remotest that quant trading is in any way related to Technical Analysis as defined in retail space is a testimony to you not knowing at all what you are talking about.

I have no intention of getting into a spit fest, but does this "volpunter" ever NOT have an opinion? I see that he's all over ET, on each and every thread, handing out his unwelcomed condescending remarks. Should anyone disagree with his pompous remarks, he pisses everyone off with his half-ass invectives.

He speaks down on TA with authority like as if he ever used it but just when does he ever trade when he's spending all his waking hours posting here on ET? I can't believe this crap is being tolerated. Seriously! :eek:

 

[volpunter]

By the way dare to compare our post count and likes to post count ratio? Why not letting the facts speak for themselves? If anyone among the two of us spends more time on this site or has been here way longer but seems to not have his posts appreciated relative to the vast output of posts then I would say it clearly points to you my friend. That is the difference between quants and TA apostles as well: the former use statistical facts and empirical evidence...the latter make unproven and unquantifyable conjectures. Peace out mate. You were the first here to attack a whole profession of those who apply scientifically sound and proven concepts. The one starting to bicker and complain was you. You should thank me for having exposed that snake oil salesman who got subsequently booted off the thread.

I have no intention of getting into a spit fest, but does this "volpunter" ever NOT have an opinion? I see that he's all over ET, on each and every thread, handing out his unwelcomed condescending remarks. Should anyone disagree with his pompous remarks, he pisses everyone off with his half-ass invectives.

He speaks down on TA with authority like as if he ever used it but just when does he ever trade when he's spending all his waking hours posting here on ET? I can't believe this crap is being tolerated. Seriously! :eek:

 

[dartmus]

You should thank me for having exposed that snake oil salesman who got subsequently booted off the thread.

He was booted for not being aware of and paying the fee to be a sponsor, which is required of all who profit directly from participation here. I clicked the like button on his posts and subscribed to him. He answered all your questions effortlessly. You lost that debate.

I would not b surprised if he pays the fee and starts posting regularly. If the deleted posts were reinstated we would have the instant replay which can verify my claim.

 

[lawrence-lugar]

I always hear people say trading is worthless unless you are a quant trader.

That's not true.
Stop reading too much and hard into the random voices online. -- and Just...Trade...on your own.
You'd be surprised...what you can accomplish with a clear, clean slate.
Think of yourself, the new trader, kind of like...you're Christopher Columbus...discovering new land with an open, hungry and vibrant mind.

(Quant and HFT trading is for large institutions that are fine with scalping pennies only making a very tiny of a percentage return, making up for it in volume)

 

[volpunter]

Agree with most of what you said, though quant trading does not find its application in large institutions, only. Trading volatility via options is very quantitative in nature. So is trading correlations via various exchange traded products given one has an appreciation for mathematics and statistics. All can be done from a retail perspective.

That's not true.
Stop reading too much and hard into the random voices online. -- and Just...Trade...on your own.
You'd be surprised...what you can accomplish with a clear, clean slate.
Think of yourself, the new trader, kind of like...you're Christopher Columbus...discovering new land with an open, hungry and vibrant mind.

(Quant and HFT trading is for large institutions that are fine with scalping pennies only making a very tiny of a percentage return, making up for it in volume)

 

[d08]

Not exactly a respected source--- heck, its worse than wikipedia.

Yeah, I would've thought you think Wikipedia is terrible.

Quant comes from quantifiable and that's pretty much it - quantifiable vs discretionary.

And no, you don't need to use Matlab to be a quant, that's a very narrow and wrong definition of quants. They use the same inputs, having more steps in a calculation does not change it to something different.

 

[Banjo]

Can anyone provide an example of a quant's real life experience? Does he/she get an idea, create a model and test. What would an example model look like , how would it be tested, against which intsruments or indices? Would a quantitative system be used for allocation of funds. How would those decisions be arrived at? Would models be forced to change with the morphing market environments or is there a model that works in all markets? Examples would be educational and help point those interested in the proper direction.
I see surf is back in the prediction game.
Marketsurfer says SHORT T-MOBILE TMUS

 

[Banjo]

TMUS may be an interesting real time study. What would any example quantatative model say about TMUS? Can a model be constructed that would "discover" TMUS as an advantageous name to deploy capital. If so ,we can see the flaws or the success of an applied model. A real time learning experience to witness.

 

[rmorse]

Can anyone provide an example of a quant's real life experience?

I met with a hedge fund last weekend. They use a quantitative model to choose the stocks in their Long/short fund. They are not an automated system. They use a mathematical model, inputting company data and economic data to determine what to buy or sell and when. They execute though a VWAP orders and have a large portfolio. They don't change positions often, only when the model directs them to. Yes, they tested their model over time. I assume they started with back testing then real money. My point is that your start with a theory, mathematically test it, then run it. And the execution does not have to be HF or automated. They enter the orders that morning by hand into a basket.

Bob

 

[volpunter]

"My Life as a quant" by Derman

+

in addition, do a simple google search, you will find countless accounts...

Can anyone provide an example of a quant's real life experience? Does he/she get an idea, create a model and test. What would an example model look like , how would it be tested, against which intsruments or indices? Would a quantitative system be used for allocation of funds. How would those decisions be arrived at? Would models be forced to change with the morphing market environments or is there a model that works in all markets? Examples would be educational and help point those interested in the proper direction.
I see surf is back in the prediction game.
Marketsurfer says SHORT T-MOBILE TMUS