Clawing my way to $10M AUM with systematic trading & investing | Weekly newsletter: https://t.co/4bml6nyBWf | Follow for actionable insights | DMs open 📩returnoneffort.beehiiv.com Not financial adviceJoined March 2023
Our small account has 2xed followers in the last couple of months with limited changes on our part. BUT most of the new followers seem to be bots.
Why do I think bots? Random user names with numbers, recently joined, no obvious link to our content.
@elonmusk is this a bug?
Our small account has 2xed followers in the last couple of months with limited changes on our part. BUT most of the new followers seem to be bots.
Why do I think bots? Random user names with numbers, recently joined, no obvious link to our content.
@elonmusk is this a bug?
I have noticed that a lot of bot accounts have started following smaller accounts including this one over the last 1-2 months. Anyone know why? Did Twitter change its algo?
I have only done quant trading for the past few years. But my hypothesis is that with AI, large institutions will have an army of 100-1000s of cheap AI agents to find & exploit edges faster than me.
So thinking of switching to fundamental investing.
Stupid decision?
I am trying to embed a large number of tokens (c. 5 billion) for clustering, classification and retrieval downstream tasks. The documents are all finance related (ie contain finance jargon).
Anyone have suggestions on embedding models that balance performance with cost?
I am curious if all us here on FinTwit are in a bubble. Is retail investing really that big? How many of you know others in real life who trade/invest personally?
Could #AAPL launch it’s own social media platform next year? They announced 3D photos/videos with the VisionPro and people are going to want to share that somehow.
An AR first social media platform where you can step into other people’s lives!
Would be wilddd!
Once you start developing a portfolio approach to your strategies you need to categorize your systems by their characteristics:
- Momentum
- Mean reversion
- Arb
- Etc
Efficient allocation of capital to each group will tend to result in a smoother equity curve.
Risk of Ruin: A Key Aspect of Risk Management
When it comes to algorithmic trading, understanding the concept of "risk of ruin" is crucial. It refers to the likelihood of losing all your capital and being unable to continue trading.
To illustrate the risk of ruin, let's…
Try measuring your signal vs random signal.
If your signal produces better performance than just a random signal you're onto something.
Apply that rule into 1k random signals.
Do that in multiple iterations.
Quant vs Discretionary trading - not so black and white.
Trading remains discretionary, quant just harnesses more stats for judgment.
Call it 'systematic' trading - a much closer representation.
Monte Carlo simulations have very practical uses in trading.
One useful application is setting realistic expectations for your strategy's maximum drawdown.
To learn more, check out my latest article!
returnoneffort.beehiiv.com/p/setting-real…
New to systematic trading? Priority number one: Dedicate your first 3-6 months to setting up a research infrastructure. Consider it as laying the foundation of a house.
This includes a database, a backtesting engine and a portfolio management component. Let's break it down:
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