smabie

66 ms·

901.
by smabie 6y ago
1. dow is irrelevant, you should ignore it 2. it's not so easy to determine whether a fund is providing value, you can't just look at returns. The math is more complex than that.
902.
by smabie 6y ago
Yeah I think a lot of hedge funds are run by idiots. Market making firms however, they are the true stars. There are also some really good hedge funds: RenTec, Millennium, 2 Sigma, etc. A lot of hedge funds are dinosaurs and are slowly goin
903.
by smabie 6y ago
I get what you're saying but I don't think I've ever heard professional investors describe generating returns as "easy." Making money at a trading or investment firm is serious work, and no one takes it lightly. U
904.
by smabie 6y ago
The quote from that caller is pretty amazing. There are just so many things wrong his statement that it's hard to even know where to start. 1. A 7% weekly loss isn't really anything that a buy and hold investor should be worried o
905.
by smabie 6y ago
In your opinion, what is sketchy about dark pools. I have a couple answers (pertaining to marketing, but not operations of the pool), but am curious about what the popular perception of these pools are.
906.
by smabie 6y ago
Really what you want in this case are just stock swaps or futures that are cash settled.
907.
by smabie 6y ago
I guarantee that Citadel Securities isn't taking into considering what Citadel capital is doing. It's just not how firms like that operate. Every desk is trying to maximize pnl, end of story.
908.
by smabie 6y ago
Citadel is not front running trades. This isn't how PFOF works. People say this over and over again, but it just shows that they have little to no understanding of how a market maker operates. Which is fine, everyone is uninformed abou
909.
by smabie 6y ago
what is a editor based version of Lisp? fwiw, I really like Racket. It's definitely the most clean/elegant Lisp around.
910.
by smabie 6y ago
that sounds really awful, not "fine."
911.
by smabie 6y ago
you sound like a quant. are you l? if so, always like to network/talk/make connections hmu
912.
by smabie 6y ago
I actually think Cory the boyd could probably figure it out.
913.
by smabie 6y ago
I have no experience in this field, but do you think it's more likely they are making crazy profits or that they are just really incompetent? probably a little bit (or a lot) of both I'd imagine.
914.
by smabie 6y ago
maker rebates also are a pretty significant incentive
915.
by smabie 6y ago
Sorry, I'm using risk premia incorrectly (quant equities isn't actually my thing). What I mean is that I don't believe smb truly delivers superior risk adjusted returns. For example, I believe the betting against beta factor
916.
by smabie 6y ago
A lot of ff research is not very rigorous and highly suspect imo. it's more likely imo that smb is a risk premia than some sort of alpha factor
917.
by smabie 6y ago
Assuming the amount of tradable shares for each stock is proportional to the free float capitalization (which is not a particularly good assumption), each stock in the index should be pushed up by the same amount, since the weight of each s
918.
by smabie 6y ago
by beta slippage you mean volatility drag? On a risk adjusted basis, upro is definitely a loser due to volatility drag and high expense ratio. However, you can easily calculate optimal leverage ratio in order to maximize the geometric growt
919.
by smabie 6y ago
UPRO is only 1/3 of your portfolio, so you have the same exposure as SPY i.e: you are not going to make those crazy returns. The idea is to get cheap borrowing by using a leverage ETF and then buying bonds such that the bond yield >
920.
by smabie 6y ago
All Emiraties in Dubai get paid huge salaries and as you say, do pretty much nothing. Police officers might make 200k/yr. It's pretty much a giant welfare state. Many foreigners do very well over there as well, but a much larger p
921.
by smabie 6y ago
None of the kinds of people you listed are good at trading (esp economists). From experience, professional traders do tend to use passive indices for part of their PA, but also actively trade a portion. But you're right in that if you
922.
by smabie 6y ago
buy-side or sell-side? I don't have any exp with working at a fund or a bank, but I work at a prop shop and the atmosphere is markedly different than what people would expect. Money is not wasted, profits are distributed every month in
923.
by smabie 6y ago
That's because the costs come from OPM. When you work at a prop shop and all the money is literally the money of the employees, things are very different. Sure, everyone makes out like bandits and gets rich if things are going accord
924.
by smabie 6y ago
Is your money where your mouth is? Opinions are cheap and if I've learned something in my career as a trader, it's that anything can happen
925.
by smabie 6y ago
IVs in the crypto world can get up to 100-250, but 1000 is insane even for crypto. Truly incredible.
926.
by smabie 6y ago
*three brothers
927.
by smabie 6y ago
what he's talking about is what happened with Netflix: once the media companies realized how much money Netflix was making they revoked their content (or upped the price) and created their own services. I agree with OP, streaming is a
928.
by smabie 6y ago
interest rates are not low, we just measure them wrong. The dollar is being devalued at an astounding pace, and yet some people will split hairs and say "well, technically.." look at stocks, housing, land, education, health care a
929.
by smabie 6y ago
What fines? No real firms front run. Market makers are not front running your orders. This does not happen
930.
by smabie 6y ago
No one is front running orders on a large scale. This does not happen.

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