Tools being used by your trading competition

[Gringotts Bank]

As far as hackers frontrunning the nice equity curves, again sounds more like something out of Hollywood, you'd still need the faster connection to frontrun, to somehow know HOW they're trading, when they're executing, all of which is very hard to get from an equity curve.

I don't think it's fantasy at all, especially after talking to this expert. You'd identify the individuals/companies who own the equity curves, and just intercept orders at an earlier point, like at the ISP. Or, hack the PC that houses the source code for the system.

Anywhere there's big money, there's an attempt to collect sensitive data illegally. I never said it was an issue for us small fish. Imagine knowing that Soros had made a decision to aggressively short the pound? Or that GS had decided to dump Apple?

 

[OmegaTrader]

Related to the whole Quants are winning debate:


It has also fascinated me that one of the richest men in the world is a buy and hold investor with no stock quote machine!

All he does is conservatively value a company and its prospects and buy it at bargain prices.

No algorithms, no charts, no fancy computers

Just buying bargains......


He has been around for a long time and get special deals,

but shouldn't the richest man in the world be a Quant???

That never made sense to me.

 

[Wysiwyg]

Be interesting to see an example of these tools but that is most likely top secret as not many reveal their trading success method.

 

[tech/a]

Oh my have you really thought about this?

Related to the whole Quants are winning debate:

It has also fascinated me that one of the richest men in the world is a buy and hold investor with no stock quote machine!

All he does is conservatively value a company and its prospects and buy it at bargain prices.

No algorithms, no charts, no fancy computers

Just buying bargains......

Buffett BUYS COMPANIES---all of the company.
Then transforms them and if you think he does this WITHOUT the input of a team of Quants then think again!

He has been around for a long time and get special deals,

but shouldn't the richest man in the world be a Quant???

That never made sense to me.

The world is run by Quants.

Aerospace
Aeronautics
Medicine
Technology
Engineering
Climate control and the lack of it
Mining
Energy production
Military

FINANCE

The point Howard (Captain Cook) is making is that all of those looking out at the vast sea in front of them
can rest assured that the world isn't flat and he knows as unlike those staring out at the sea in front of them
he has been there --- that's where he lives---he sails it.

Be interesting to see an example of these tools but that is most likely top secret as not many reveal their trading success method.

Examples are all around you.
The problem is most are so blind they cannot see.
Just because you cant see it doesn't mean its not there doing exactly what its supposed to do for exactly the reason its supposed to and for exactly the people its meant to serve.

Ever been on a plane?
Seen a Bank make 10 Billion?
Driven over a bridge?
Heard of the name Zuckerberg?
Seen the growth of google?
Watched an invasion?

Yeh Quants rule the world.
The richest men in the world are surrounded by Quants
They employ 1000s of them.
----and pretty soon you'll be able to join them---even you Thingamiggy
There is a vast wave of Howard Bandies on the horizon.

 

[ThingyMajiggy]

I don't think it's fantasy at all, especially after talking to this expert. You'd identify the individuals/companies who own the equity curves, and just intercept orders at an earlier point, like at the ISP. Or, hack the PC that houses the source code for the system.

Anywhere there's big money, there's an attempt to collect sensitive data illegally. I never said it was an issue for us small fish. Imagine knowing that Soros had made a decision to aggressively short the pound? Or that GS had decided to dump Apple?

Haha you've seen too many movies GB. Yes, technically if it's connected to the internet it can be hacked, but it's highly unlikely, for something to be hacked it needs an actual vulnerability to begin with, a buffer overflow or remote code execution or some kind of weakness in the code, you can't just "hack" things like they do in movies, there needs to be an actual weak point that can be exploited, all these hacks you hear about in the news are 90% social engineering, someones account got hacked, or some website got hacked and data was released, pretty much always social engineering, tricking someone into thinking you're someone who should have access, or building a replica fake site that looks exactly like the one they have to login to, where you then intercept their login details, a MITM attack.

In a up to date system, which if a brokerage and ESPECIALLY an ISP DIDN'T have would be incredibly stupid, there isn't much chance of it being hacked. It's just not that easy, nearly everything is encrypted these days, everywhere you login, everything you transfer, so the different points at which you would need to gain access and/or intercept would be insane.

Then you have honeypots and firewalls and tons of other stuff to make it even harder, then once they're through all of that, to be able to find Soro's position on the pound is just not possible, however juicy in our minds/imagination. It would probably be easier to hack Soros himself than hack the brokerage he uses and the ISP.

Us small fish are actually the ones that are probably more vulnerable because the big fish and especially ISP's would make sure they have decent security simply because of the funds/knowledge they have. People and pathetically easy passwords are the weak part, not the systems themselves connected to the internet.

Plus we kind of can tell when big positions are put on, it's called volume isn't it?

 

[So_Cynical]

G
a presentation by Stephen Simmons at one of the professional conferences held in 2016 related to use of the Python language. Stephen is a developer working in the commodities trading area of J. P. Morgan in London.

His talk is about Pandas, a Python library developed by Wes McKinney, formerly with Cliff Asness' hedge fund, AQR Capital, about five years ago. Pandas is central to analysis of time series data, and is a popular topic at these conferences and seminars. If you are planning to learn to develop systems using Python, and perhaps machine learning, you will need to learn about Pandas -- but begin with basic Python first.

Python is a programming language that has been around for a while, a good language but just a language.

numpy is an extension of that language that allows for greater number crunching and a few other things.

They are not magic formulas, they simply allow for very complex programs to run, computers to do stuff.

 

[Wysiwyg]

The world is run by Quants.

Aerospace
Aeronautics
Medicine
Technology
Engineering
Climate control and the lack of it
Mining
Energy production
Military

Engineers have been around for thousands of years. Can you be specific with a quantitative analysis example?

 

[tech/a]

Engineers have been around for thousands of years. Can you be specific with a quantitative analysis example?

Yes but we aren't talking about engineering.
We are talking about analysis of data to be able to quantify a decision or group of decisions.

Not available in the Roman era.

Lets say I want to build a bridge.

I have

Geotech data
Product data
Costing data
Weather data
Capability data
Past data
Traffic and load data

I want to analyse all of that data to give me the best possible information relative to the type of bridge I'm going to design and build.

EG
Beam/Arch or perhaps a Cantilever type bridge

Hell I might even look at a Tunnel alternative!

Maybe the Pyramids would have been better designed as a underground sealed tomb!
Rome may have been built sooner.

Quats will/can give me that information.

 

[Wysiwyg]

There is a vast wave of Howard Bandies on the horizon.

Yes I understand Howard is running sentiment analysis on ASF posters now.

 

[tech/a]

Yes I understand Howard is running sentiment analysis on ASF posters now.

They're not all going by the name Howard Bandy.
And I think they are all more sophisticated than that---

 

[Wysiwyg]

I want to analyse all of that data to give me the best possible information relative to the type of bridge I'm going to design and build.


Quats will/can give me that information.

I believe it is simply data building on data. Nothing new, just more people have access to that information than ever before.

 

[tech/a]

I believe it is simply data building on data. Nothing new, just more people have access to that information than ever before.

Data by itself is meaningless.

Firstly what data is required to determine
What result
What result is required to be meaningful and useful.

If you don't know how to travel the road you won't know what it is that is at it's end.

So it's my belief that the masses looking out to see have no idea what it is they are looking at and looking for.

So grabbing a boat is pointless.
Stick Captain Cook in the boat and you might actually find something worth while.
Better still embrace Cooks vision ( That the world may not be flat---even though he knows it isn't ) and set about proving it!

 

[minwa]

So tech back to the original statement that started the debate - how come your analysis is full of charts instead of numbers/stats/program language if charting days are over as deemed by Captain Cook

 

[tech/a]

So tech back to the original statement that started the debate - how come your analysis is full of charts instead of numbers/stats/program language if charting days are over as deemed by Captain Cook

Took a while to rotate here!

I still trade discretionary and still do ok.

But I have for the last 2 yrs been the venture capital partner in a company
Which is at the forefront of jumping off the edge.
I've had the opportunity of watching these guys on a daily basis
I've watched in aw as they write code ( python ) as quick as my
P/A types reports and letters.

I've learnt and am still learning at an exponential rate.

I've posted nothing here as I have nothing to post.
But all will become clear-er.

 

[minwa]

Took a while to rotate here!

I still trade discretionary and still do ok.

But I have for the last 2 yrs been the venture capital partner in a company
Which is at the forefront of jumping off the edge.
I've had the opportunity of watching these guys on a daily basis
I've watched in aw as they write code ( python ) as quick as my
P/A types reports and letters.

I've learnt and am still learning at an exponential rate.

I've posted nothing here as I have nothing to post.
But all will become clear-er.

OK thanks that puts things into perspective. No problem that you think that way's the future, an opinion.

My only problem with the first post was that Howard stating that was the only way to go and the other ways don't work.

 

[tech/a]

OK thanks that puts things into perspective. No problem that you think that way's the future, an opinion.

My only problem with the first post was that Howard stating that was the only way to go and the other ways don't work.

My personal opinion is that it's no harder than it has been
But would I trade 500k or more in a discretionary way--my way--no-- not yet knowing what I know.

There is a lot more to this topic than long term trading / investing.

I think that a discretionary trader can/should benefit from the information they can gain from quant analysis of the data and methodologies they employ or are thinking of employing.

What you can add and subtract with confidence from your discretionary trading.
It's helped me already but I'm still on the beach!

 

[Gringotts Bank]

This video will appeal to the die-hard discretionary traders. May their edge never be eroded by AI. From 9:27 especially.

TLW Turning off your higher level brain processes may confer an advantage in trading.

 

[Gringotts Bank]

That should read TL;DW

So how to switch off the analytical mind? Play computer games until your alert gets triggered, switch screens and decide in an instant? That might be one way. I know personally that when I've attempted discretionary trading that the longer I take to make my decision, and the more factors I take into consideration, the less likely I will make a winning trade.

 

[tech/a]

That should read TL;DW

So how to switch off the analytical mind? Play computer games until your alert gets triggered, switch screens and decide in an instant? That might be one way. I know personally that when I've attempted discretionary trading that the longer I take to make my decision, and the more factors I take into consideration, the less likely I will make a winning trade.

I agree

How do you trade G/B?

I've asked before
What do you do for work?

 

[Gringotts Bank]

I agree

How do you trade G/B?

I've asked before
What do you do for work?

I trade with systems, and every now and then I try my hand at discretionary. I'm not very good at disc. though.

Prefer not to say re work.