smabie

75 ms·

811.
by smabie 6y ago
Could you give an example? Market making firms have done really well due to wsb and the increase of retail volumes but it's unclear to me that hedge funds have benefited in any material way.
812.
by smabie 6y ago
Yeah you're right I'm sorry it was flippant and inappropriate.
813.
by smabie 6y ago
Null hypothesis is: he is not generating alpha given the assumption the underlying distribution of his returns are the same as SPY. How would you calculate the chance of him generating alpha using only the fact (and no other data) that he
814.
by smabie 6y ago
Some context would be helpful.
815.
by smabie 6y ago
Have you considered adding finance/investment/trading salaries? It's super great for tech (one high paying field) and I think it would be really great for finance (another high paying field).
816.
by smabie 6y ago
Glassdoor systematically underestimates total compensation for pretty much every position I've looked at. Not exactly sure why that is.
817.
by smabie 6y ago
This applies to trading perfectly as well. It's rare that the true math studs are the rainmakers (though it does happen), and instead the street smart players who just try to reasonable end up dominating. By "street smart", I
818.
by smabie 6y ago
you look at a normal distribution of returns using SPY mean return and SPY stdev as the parameters and then calculate the chance of his returns or better 6 years in a row. There's a lot of things wrong with my calculation, but it was
819.
by smabie 6y ago
Sure, all I'm saying it is much more likely than not that his returns are due to skill.
820.
by smabie 6y ago
I don't think you're missing anything, most just people fundamentally don't understand the markets and like to say all kinds of inane things. Moreover if short selling was banned, people would just express the same view by se
821.
by smabie 6y ago
Hard to take anyone seriously who wants to ban short selling. Moreover it's not even possible without making an exemption for market making firms. Also they're talking about how GME made people aware that short selling was a probl
822.
by smabie 6y ago
That is also true, though the portfolio manager did well during bear markets as well. Doesn't say tell us how his current portfolio would hold up, but he's probably as well equipped as anyone to navigate the environment (which may
823.
by smabie 6y ago
ARKK? You want to use an actively managed fund as a benchmark? No one does this. You could use QQQ, with pretty much the same results.
824.
by smabie 6y ago
Most people (at least retail investors) don't measure doing "well" against a benchmark. i.e everyone can be doing well in a bull market.
825.
by smabie 6y ago
Using some simple math (and somewhat inaccurate math), let's calculate the chance of the null hypothesis being true: he has no skill and it is just luck, assuming 10% annualized volatility for the market and 8% annualized return. By my
826.
by smabie 6y ago
exactly AM-GM inequality, volatility drag, etc
827.
by smabie 6y ago
what kind of moron is paying $1-$2 per oz ? Now that's just crazy
828.
by smabie 6y ago
https://www.google.com/search?q=btc+debit+card I'm not sure what you're exactly getting at with the ad hominem, but are you doubting who I say I am?
829.
by smabie 6y ago
there's btc debit cards. Moreover, many people have enough fiat already and are looking to get paid in crypto in order to increase their crypto exposure.
830.
by smabie 6y ago
It's common for crypto trading firms to pay in crypto, mostly because they have so much of it sitting around in trading accounts.
831.
by smabie 6y ago
ehh, people are at work a lot in Japan, but no one really does anything.
832.
by smabie 6y ago
supply and demand. Not very many companies do animation.
833.
by smabie 6y ago
My BTC brings me joy.
834.
by smabie 6y ago
Ehh, sort of. Volume is highly correlated with return due to the wealth affect. When crypto crashes people stop trading.
835.
by smabie 6y ago
Is your money where your mouth is? 100% BTC will be worth more than it is today in 25 years.
836.
by smabie 6y ago
Still egregious (and no derivs) compared to large Asian exchanges. No real trading firm wants to trade on CB right now.
837.
by smabie 6y ago
most prop firms are not trading on CB. It's spot only (yuck) and yes, the fees are awful. I'm pretty bearish on CB and incredibly bullish on FTX. SBF could very well be the richest man on earth in 5 years.
838.
by smabie 6y ago
Very awesome work guys. A lot cool things could be done wrt to portfolio optimization. Not sure if you have this already, but being able to specify optimizers (BL model, min variance, EF, risk parity, etc) would be super cool. Like support
839.
by smabie 6y ago
What's the difference? answer: nothing. Passive investing doesn't exist. Everything is active
840.
by smabie 6y ago
or they can just take the money anyways and no one will know. besides, you can accept a gift in btc

More ›