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I remember reading a reddit thread that detailed the broad outlines of one of Renaissance's trading strategies. From memory it was basically arbitraging indexes
by SnorkelTan 3y ago
I remember reading a reddit thread that detailed the broad outlines of one of Renaissance's trading strategies. From memory it was basically arbitraging indexes of certain groups stocks by buying/selling the underlying stocks using leverage when the index deviates from the price of the assets. They used predictive modelling from lots of data sources to determine when this would occur.
Does anyone have the link?
- objektif 3y agoThis us just simple index/etf arb. It is not about what they do there is certainly something in how they do it and it is most likely something common that they replicate in all their strategies.
- sdfghswe 3y agoThere's nothing new in what you described. Saying "they arb and use lots of data" contains exactly as much information as saying "they buy low and sell high". The implementation details are everything.
- deleted 3y ago[deleted]
- SnorkelTan 3y agoThe Reddit link I was hoping someone had contained specific symbols and detailed information about the strategy. I kept my summary general because I wanted to keep the summary as accurate as possible.
- ijustwanttovote 3y agoI hope someone answers with the link, I'm very curious myself.
- SnorkelTan 3y agoThe Reddit discussion on algo trading: https://reddit.com/r/algotrading/s/zYzV6XxR0p https://reddit.com/r/algotrading/s/zYzV6XxR0p Quora discussion from an informed source: https://www.quora.com/What-are-the-investment-strategies-of-James-Simons-Renaissance-Technologies-I-understand-he-employs-complex-mathematical-models-along-with-statistical-analyses-to-predict-non-equilibrium-changes https://www.quora.com/What-are-the-investment-strategies-of-... Also talks about the barrier option they buy from investment banks for hedging purposes and the tax situations.