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By trader, I mean domain knowledge about the markets. Statistics is the toolbox that this domain expert uses to test their hypotheses and turn them into a profi
by hntrader 6y ago
By trader, I mean domain knowledge about the markets. Statistics is the toolbox that this domain expert uses to test their hypotheses and turn them into a profitable model. But if the person isn't a domain expert and only knows statistics, their ideas about what to test won't be good.
- wpietri 6y agoAnd to knowledge, I'd add disposition. It's been years since I've been in finance, but the best traders I worked with were all very driven to succeed, to dominate, to win. Markets were really interesting to me, but I never cared much about that part.
- hntrader 6y agoYeah, it's a performance discipline like any other (competitive gaming, athletics, etc) where only the top few % can succeed. If someone isn't very driven then they won't make it.
- red_hare 6y agoThis is almost precisely the thought process behind how my company hires data scientists who build user-facing analysis. 1/3 statistician 1/3 engineer 1/3 product person who can learn the user's domain-specific needs