Buy side slams vendor pre-trade models after April volatility shock - Global Trading

The interesting thing about financial markets is that so many systematic strategies are operating today. The reliance on experience and discretion is becoming less and less of the overall makeup of things. Passive flows are obviously taking over a lot and the active space is turning more systematic. To be fair, the market has become significantly m

They go counter to your human nature. We had an example of that a couple of years ago when interest rates were really low. We had been stopped out of our long bond position. We got a re-entry signal to go long again, and I looked at Rob and he

I understood the rationale behind the model and knew that it was sound. I don’t actually do that, but I know people at Goldman Sachs who were beginning to work with those kinds of models. They used what I would characterize as technical models built with fundamental data. I think that’s a fertile place for exploration. So, you acknowledge the possi

Markets with overconfident traders will produce extremely high trading volumes, increased volatility, strange correlations in stock prices from day to day, and below-average returns for active traders—all the things that we observe in the real world.

Markets with overconfident traders will produce extremely high trading volumes, increased volatility, strange correlations in stock prices from day to day, and below-average returns for active traders—all the things that we observe in the real world.