Patterson describes clearly the lengths Thorp was willing to go to, in order to prove that his systems worked, and that the odds could be shifted in his favour. Patterson has a good writing style and the story moves along at a decent clip. Thorp made the connection between these theroies and the movement of pricing for Bonds and Warrants. This book is compelling and intriguing in its exploration of the players and their practices through the Great Recession. He was first exposed to the quantitative analysis investment strategies while covering the financial industry for the Wall Street Journal. The connection between Thorp and Claude Shannon the ‘father’ of information theory are particularly enlightening, and the bond that the two men made, aiming towards a common goal, is well covered. The story continues and my job is to try to figure out what the other players are doing, how to protect my clients and help them to benefit from the investing world at the same time.
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Feb 11, Abeisu rated it liked it. Taleb and Mandelbrot are both mentioned several times as mathematicians, although only once is Taleb called a Quant.
There were, however, other major market dynamics that were independent of the quants. The connection between Thorp and Claude Shannon the ‘father’ of information theory are particularly enlightening, and the bond that the two men made, aiming towards a common goal, is well covered.
Very I qaunts across this rather worn book at a garage sale or a used book store maybe this passed year. Patterson has a knack for appealing to the masses and is able to do so quite well in this book.
There are connections but it’s just not the case that the quant crisis of caused the problem in any meaningful sense it is more true that there are some common causes of both, but that isn’t his angle so much. For starters, a lot of the facts are not overly factual. It’s a search for Lots Of Little Oopses.
Patteeson were preparing to compete in a poker tournament with million-dollar stakes, but those numbers meant nothing to them. Apple Audible downpour eMusic audiobooks. Mar 04, Joy rated it really liked it. Patterson describes clearly the lengths Thorp was willing to go to, in order to prove that his systems worked, and that the odds could be shifted in his favour.
The Quants By Scott Patterson – Part 1
The book describes the world of quantitative analysis and the various hedge funds that use the technique. I would highly recommend this book to anyone who finds soundbite media coverage of the economy lacking, and instead would like a more in-depth account of precisely what might have gone wrong in our economic systems over the past 5 years, or past 50 years if we really start to interrogate the genealogy of the present problems.
More cautious firms faced a different risk, that their customers would take their money to the less risk-averse firms in search of higher returns on investment, and often embraced the riskier modus operandi to stay competitive.
The world can be sure that many of these same Quants and a lot more freshly minted Quants joining the financial markets after the meltdown ofwill be concocting new tricks and minting new ideas to reap in more monies than ever. At the card table that night was Peter Muller, who managed a fabulously successful hedge fund called PDT. The book starts by introducing the main players.
Interestingly enough, the quant pioneers got their start learning how to manage risk in games of chance such as blackjack and roulette, like their predecessors who centuries earlier pioneered the science pattedson probability and statistics for purposes of managing risk while gambling in games of dice.
The Quants By Scott Patterson – Part 1 · Scalabiliti
I think my rating would really be a 3. It was after the book was published, that Thorp and Kassouf launched their own business, modelled on an under-used corporate entiy known as a Hedge Fund.
There are still a lot of hedge funds around, and like the author said, none of the investors are complaining that their hedge fund managers are making too much money. They were accustomed to risking billions.
It’s amusing to learn about the details of how their models broke down and how these supposed geniuses got caught with their pants down. The quants believed that a cocktail of differential calculus, quantum physics, and advanced geometry held the key to reaping riches from the financial markets.
The story continues and my job is to try to figure out what the other players are scottt, how to protect my clients and help them to benefit from the investing world at the same time. Revealed through the study of obscure patterns in the market, the Truth was the key to unlocking billions in profits.
The introduction to The Quants describes the real-life, annual, high-stakes poker match between Wall Street’s hedge fund managers, comparing their trading styles to their poker strategies. Patterson crafts a compelling narrative about the rise and fall of an extremely talented set of mathematicians and economists that came to dominate stock markets with quantitative modeling, sophisticated computer algorithms, and rapid fire computer based trading. Some background info on mortgage securitization, CDO’s, and CDS, along with Jim Thorpe poker strategies and stat arb trading trading to take advantage of historical relationships between two securities.
Nov 23, Jon Angell rated it really liked it Shelves: This was very helpful when reading the rest of the book. A Scientific Stock Market System. The Truth was a universal secret about the way the market worked that could only be discovered through mathematics.