"So you think about conditions like these, determine the significance and correlations between all of them, and then come up with an overall model that tells yo

"So you think about conditions like these, determine the significance and correlations between all of them, and then come up with an overall model that tells you whether an asset such as a stock will increase or decrease in value" Knowing whether the stock is likely to go up or down is dangerous without having some model of how much it will go up or down. It could have a 90% chance of going up but with a negative expected return (because if it goes up it will only go up slightly but if it goes down it will crash). I wonder if this guy understands this? His "up/down" language suggests that maybe he doesnt and his group is only making money by "picking up pennies in front of a steamroller". Monty Hall and the Birthday problem? Are they still asking these old hackneyed interview questions!? As a whole everything this guy said in the interview sounds a bit naive/old-hat. Are people really still blindly trading the correlation between MSFT and Oil? The whole interview reads like what a junior statistics graduate thinks quant trading funds do rather than how they actually make money nowadays. It's like he hasn't even read Fooled by Randomness....