Reminds me of the British traders during 9/11 who shorted the market before anyone realizes it's a terrorist attack and the US closed the airspace. Except this is happening at a more granular level with data and correlations that regular people won't immediately make
to be fair to them medaillon hedge fund ( renaissance) actually have just insane return compare to any other fund in the world or even state maybe there is some insider trading but i am sure some big bank do worst and they are no where close their return . So they must be good at predicting something to make these returns
@@zeobide that's just dumb. The system is not responsible for detailed info in a field you don't know. This is not "basic info" Anything basic is not the system's business😂 That gives room for TH-camrs like this to make money. A weird win if you ask me.
they do statistics all day. the math used in quant finance isn't earth-shattering, it's essentially just graduate level statistics applied in clever ways on massive datasets and really fast computers
With the assumed time traveling machine you obviously posses there are more lucrative information to exploit, then just Nebraska weather, so it checks out
This is honestly the realest sounding job so far. Also something I might have actually enjoyed if I had reallised it was an option and was actually motivated when I was younger
It sounds like they're sort of the engineers of the finance world. And as an engineer with a soft spot for finance...yeah maybe I should have done this
@@SilverstrikeSDYes, our phds are often in engineering, applied mathematics, and physics. Or even CS - but that's usually the implementation team. Tools to solve problems in our domain can range from basic stochastic calculus to using quantum theory.. very diverse set of problems and also quite commonly 6-7 figure compensation without the need to give 70 hours to a corporation per week.. not a bad job
@@emmanuelnaranjo8114mathematics and physics typically. Though like many other jobs right now the required qualifications are becoming increasingly more extreme, nowadays it seems you’d need a PhD or at the very least a first class masters to land a job as a quant. It’s good that you’ve got your eye on it early since it’s definitely a career you need a lot of specific preparation for and many seem to wish they had done stuff to get a quant job but instead did engineering etc. though just a heads up, it’s not this “if you put the work in you can do it”, don’t be shocked if you try your best and don’t land a role, it’s one of the most sought after positions amongst the smartest people in the world so a lot of the people saying they wish they had done it probably wouldn’t have been able to regardless since it’s very saturated with geniuses. Go for it fully, but acknowledge you may need to opt for a backup that also requires maths or physics and pays well
Man who solved the market is a great book BTW. Even if you know nothing of finance, it's a very easy read and a fun look at a bunch of PHD geniuses and how they operate (and almost absolutely failed several times).
There’s a deviation between the polynomial fit model and PLTR's market performance, likely due to missing stochastic drift or an incomplete volatility model. Using a skewed Black-Scholes approach with decay could account for market skewness and time decay, but adjustments are needed. 1. Add stochastic volatility using Heston or SABR models, so volatility evolves over time and captures market drift better. 2. Factor in time decay, especially if theta is skewed. 3. Account for implied volatility skew and construct a volatility surface from PLTR’s options market. 4. Use local volatility to allow volatility to change with price and time. 5. Add a stochastic drift adjustment, like a mean-reverting component. 6. Try implementing a time-dependent skew in the Black-Scholes formula. 7. Consider adding jumps with a model like Merton’s Jump Diffusion. In short, leveraging skew, refitting your polynomial model, and refining your GBDT model could help with the divergence you're seeing. I'd also suggest running a sensitivity analysis on the volatility skew to see if it captures the drift better.
I dont even know where the stock market is headed to right now. my portfolio of around 200k is not increasing more than 5% and people are predicting a downturn
Accurate asset allocation is crucial, I used hedging strategies to allocate part of my portfOlio to defensive assets for market downturns. Expert guidance is vital for achieving this. This approach has helped me stay finan-cially secure for over five years, yielding nearly $1 million in returns on invest-ments.
how is it possible that this channel is this funny, this interesting, and this well sourced and well written? how tf is this even possible? pls continue to grow fast so you can make hundreds and thousands more of these delicious mind explosion vids
I think investors should always put their cash to work, especially In 2025, we'll start to see more market diversification. I'm hoping to invest about $350k of my savings in stocks next year. Hope to make millions this 2025.
It's crucial to have a well-thought-out strategy and not make impulsive moves based on short-term market fluctuations. You should consider a market expert to guide you.
It's true that many people minimize the importance of advisers until their own feelings burn them out. A few summers ago, following a protracted divorce, I needed a significant boost to keep my business afloat. I looked for licensed advisors and found someone with the highest qualifications. She has contributed to my reserve increasing from $275k to $850k despite inflation.
I'm intrigued by this. I've searched for financial advisors online but it's kind of hard to get in touch with one. Okay if I ask you for a recommendation?
Certainly, there are a handful of experts in the field. I've experimented with a few over the past years, but I've stuck with Sophia Maurine Lanting for about five years now, and her performance has been consistently impressive.She’s quite known in her field, look-her up.
Thank you for this tip. It was easy to find your coach on web. Did my due diligence on her before scheduling a phone call with her. She seems proficient considering her resume.
I had a six month developer stint at Renaissance in 1995. I was there because I knew J - a dialect of the APL programming language. The language R was just getting popular. That company was led by Jim Simons who was celebrated in the WSJ. . In the mid 2000s Renaissance paid a big fine to the SEC which nearly equaled their profits from the beginning of time. In the 90s the company had daily trades in the tens of millions. Backgrounds varied. One Quant I knew had a Phd in Physics. He was good at using Mathematica to make graphs.. He knew the investment algorithms. Each evening computers would predict changes for the market the next day. There was a daily actual vs expected. The firm had only 30 employees. At that time offices in Walnut Creek Ca and Rhode Island. Jim mostly worked from Road island and Sandor and Harry lead up CA. Sandor did the hiring and he looked for a Masters in Operations Research just out of UC Berkeley. A fresh grad with a Masters in Mathematics owned purchasing commodity contracts.
I'm a risk quant in a top tier IB. Another point to mention is that there are a lot of different types of quants. Buy side, sell side, high frequency, low frequency, pricing, risk, assets allocation, hedging strategy, and model validation etc. The nature (and pay) are very different.
The S&P 500 moved 8.9% higher last Month, achieving one of its best monthly performances in history.. which is an indicator for profits to continue to improve. I just want my money to keep outgrowing the inflation rate. I'm still looking for companies to make additions to my $500K portfolio, to boost performance. Here for ideas..
I think the safest strategy is to diversify investments. Like spreading investments across different asset classes, like bonds, real estate, and international stocks, they can reduce the impact of a market meltdown.
I self-managed but suffered heavy losses in 2022 so I knew I couldn't continue that routine. I consulted a fiduciary financial advisor & by restructuring and diversifying my $610k portfolio with dividend-paying stocks, ETFs, Mutual funds, I significantly boosted my portfolio, achieving an annualized gain of 35%.
How can I participate in this? I sincerely aspire to establish a secure financial future and am eager to participate. Who is the driving force behind your success?
Simple. Finance = perception. Math & Asian in glasses & complex structures = the perception of being smart. The perception of being smart = big bucks AUM. QED.
Complex. Returns != perception. Try to con markets into giving you better returns = likely get average/below-average returns. Average returns = small bucks. Needs further research.
@@oleg4966 hold on let me quickly call the benchmark committee to change up the composition and time horizon backed by carefully selected academic papers to bring us above "average".
The first time I heard of the term was watching The Big Short when I was 15 years old lol 'That's my quant, my quantitative, my math specialist! Look at him. Look at his face. Look at his eyes! His name is Yang! He won a national math competition. IN CHINA!"
guy who gave the explanation about the pipeline actually explained it super well i was surprised when it cut to him saying he had no idea what the guy was talking about
I cannot express on what level this combines knowledge of the people and honour. Imagine every night late show would have this level of insider references and knowledge about the topic, our world would just be better
Quants are 4.0 gpa math grads with Masters in financial mathematics or PhD. Experience in using algorithmic models to try and predict the financial markets. Can make millions..even billions
Not all of them! one of my friends from the firm i work at is actually a high school drop out and works in quant, he was already successful with finance before he was 18 tho so he’s not a normal case but you don’t need much other than experience, they don’t look for degrees much anymore, they want to know you can do it is all they care about, show your results and they hire you, if you can’t hang you you get dropped, it’s simple
@@davidc4408 agreed, i struggled to get into it and i actually worked for free as a researcher before i got in fully, but yes that’s true but as i said my friend is a needle in a haystack the size of mount Everest, he grew up in finance and was on a math team for school til he dropped out bc he in his words “no longer needed it” as he was trading with algorithms he made already and when he was 21 he went into quant, he is a math and finance nerd and it’s almost all he knows, top math grads are not that and most don’t qualify for quant work as it’s not all math, much more goes into it that they don’t have, you can be hard decent at math bc fun fact, we all write programs to do the math for us anyway, we just do the inputs, it’s predominantly programming work, not much math anymore, most of my work is using ML & NN lol
@@davidc4408 for some reason my reply didn’t post. but, my friend is a needle in a haystack the size of mount everest and no, most quants are actually CS majors lol, i my self majored in financial engineering, along with most of the people i work with, i use math but not as much of it is manual, almost all of it i’ve automated, and pretty much every quant is using predominantly ML & NN to work
@@inducementyou will literally instantly get rejected by the automatic CV screening if you are a high school drop out lol. Top quant firms only hire from certain Universities and they have extremely high standards in terms of grades.
It’s not just that Jim Simmons was secretive. It’s that the medallion fund was employee only which meant it was a very small fund. Under 5B. That’s nothing. It needed to be small to make those big returns. Otherwise it didn’t work. Their public fund performs significantly worse but has more money.
Making money is not the same as keeping it there is a reason why investments aren't well taught in schools, the examples you gave are well stationed, the market crisis gave me my first millions, people shy away from hard times, I embrace them.. well at least my advisor does lol.
I agree. There's a lot of potential in the market. My friend introduced me to a financial advisor in 2023 Professional Chrissy Barymoer and even though I was skeptical, I went on. I finally was making enough monthly dividend to quit my soulless job and pursue my dream to start a restaurant in New Jersey and still earn five figures in monthly dividends.
Interesting but you're describing quant traders really. regular quants/ quantitative analysts are more on stochastic calculus and pricing/ hedging options (from a former quant ;-) )
btw if anyone is curious about an explanation about what the last load of jargon means from an actual quant. He is dealing with options on PLTR (ticker for Palantir Technologies), using the third derivative of the option price (ultima). His current model (gbu), which uses a polynomial fit, seems to be underperforming. He is considering implementing a Black-Scholes model(famous model for options pricing) that accounts for decay and skew, but you feel that there may be some randomness or drift in the underlying data that your current model is missing. I have not heard the term 'GBU' its either a custom tool or model used by the firm in question or a typo and he meant to say GPU which makes sense it context.
I am at the beginning of my "investment journey", planning to put 85K into dividend stocks so that I will be making up to 30% per year in dividend returns. Any advice?
Investing without proper guidance can lead to mistakes and losses. I've learned this from my own experience.If you're new to investing or don't have much time, it's best to get advice from an expert.
The issue is people have the "I want to do it myself mentality" but not equipped enough for a crash, hence get burnt. Ideally, advisors are reps for investing jobs, and at first-hand encounter, my portfolio has yielded over 300% since 2020 just after the pandemic to date.
My CFA NICOLE ANASTASIA PLUMLEE a renowned figure in her line of work. I recommend researching her credentials further... She has many years of experience and is a valuable resource for anyone looking to navigate the financial market..
I just googled her and I'm really impressed with her credentials; I reached out to her since I need all the assistance I can get. I just scheduled a caII.
I wanna thank flash traders for obliterating my elderly coworkers retirement during the 2010 flash crash when their accounts all sold when the market crashed and then recovered by the end of the day.
how was her retirement obliterated when the market recovered less than 2 hrs later? did she somehow immediately sell her entire retirement portfolio in those 2 hrs? was her retirement invested in a quant fund?
Quant - “So you know how ice cream sales go up in summer? Imagine if there are millions of other such events we don’t notice or understand yet. Quants are supposed to discover those with math.”
Woah, I was watching the video and I was expecting you to be one of those huge channels you never heard of before but stumble across and love lol, you deserve wayy more subscribers :)
Shogun fan, nice. Watched this bc I’m an advisor and headed to a conference downtown tomorrow for the rest of the week. Quants are a mix bag of people rn but that’s more of a sign of the times in the industry. I’d rather make my own schedule and grind my way to taking down a similar comp if not more in certain years. Math is a nightmare for me and I’d rather not pull those hours per week to “code and do math” lol. Great video, easy sub 🤙🏽
In short, they are trying to find the causality from a not random assignment of a random sampling which is impossible by the definition but it had never stopped quants before.
@@ege8240 Mainly assuming majority of the time that the spread will eventually close out (LTCM case study) or that the prices will revert to their mean values (multiple cases of blown up financial vehicles). The only case that is indeed intriguing would be the Renaissance, but the problem about it is that Jim took the secret sauce to the grave with him.
I appreciate this because I remember that showstopper day in philosophy class when we were talking about Berkeley's suffering as he wasn't able to confidently say the sun would rise tomorrow because it was predicated on inductive reasoning. Wah wah wah.
@DR12377 Well yeah, I mean the black swan events are always probable but to what extent? Observations do help us establish the relationships but are never indicative of causality, which could in turn be established by an experiment. Quants, who are heavily engaged in all sorts of statistical arbitrage, don't conduct any experiments whatsoever, they just assume that the relationship and/or association could be somewhat equal to causation for the sake of a model incorporation convenience. It does work a lot of the times, but then it doesn't and almost every time it ends up in a disaster of sorts.
I was seriously expecting to see Dimitri Bianco interviewed (not merely a split second of footage ripped from his channel), as in my opinion he's the best Quant channel on TH-cam
![ลองสุ่มไอโฟน 990 โกงมั้ย? [ โกงมั้ยครับ ep.101 ] | DOM](http://i.ytimg.com/vi/bfsWe0j492k/mqdefault.jpg)
quitting my job to watch this, thank you Dan!
good work
@@GoodWorkMBQuanting my job to watch this, thank you Dan!
You wouldn’t believe it but me too
Literal lol.
*slow clap*
@@GoodWorkMB He said the thing
That point about the weather and the pipeline functioning is honestly fascinating
JS built an entire engine back in 2016 to get and aggregate election data before the media to trade on poll results before the news could report it.
Agreed, I can just imagine other clever correlations they are finding through math and statistics to get ‘edge’
We also use satellite imagery to check oil storage and tanker activities.
Reminds me of the British traders during 9/11 who shorted the market before anyone realizes it's a terrorist attack and the US closed the airspace. Except this is happening at a more granular level with data and correlations that regular people won't immediately make
@anxiouschef you can't trade US market during 9/11 up until 10 days later. Only markets outside US that were open in those days.
My life is nothing but stochastic drift
All you need is a change of measure to make yourself a martingale. Live, love, laugh brotha 😎
@@42_answer64 truer words have been spoken before but i've never heard them
you mean random fk ups?
@@42_answer64😊😅😊😊
@@42_answer64😅😅
Quants are basically a wall of people who are smart that hedge funds use to make it look like their insider trades are carefully calculated.
“Don’t look behind the quant wall, there’s nothing back there.”
-JP Morgan (probably)
Preach
to be fair to them medaillon hedge fund ( renaissance) actually have just insane return compare to any other fund in the world or even state maybe there is some insider trading but i am sure some big bank do worst and they are no where close their return . So they must be good at predicting something to make these returns
@@pierremarie5800 Pull that boot out of your mouth, you're only supposed to kiss it.
We didn't do insider trading...we used quants....this black box...and a team of uber math nerds to guide our decisions!
i may not be a quant or a journalist of the reputed dan toomey's caliber, but i, too, am passionate about edge
Anyone can engage in edging 👍
I, too, love edging.
Edging?
fellow edge lover here
While you were performing quantitative analysis, I studied the blade.
That clip from The Big Short lives in my brain rent free
Honestly, same. Such a classic moment.
It's literally the first thing that came to mind when I saw the title of this video. Glad he squeezed the scene in.
Thats my quant.
His name is yang
That quant doesn’t even speak english
The trenchcoat is gone 😮
Global warming
That just means he's finally made it out the trenches 😎
time to show off those sweet sweet forearms
Summer is over, that's why.
We can't trust a reporter that does not wear trenchcoats.
either your tie is very long or your torso is very short
yes
It's the stochastic drift
He wanted you to comment that
Dan is the uncanny valley personified
or they are wearing very high waisted pants
I have never in my life seen a 9 minute 59 video on TH-cam. What is this deviousness Dan?
He’s him
it's 9:58
@@jormadre70WRONG
Can you investigate my dad he went missing when I was a kid
I told you I’m out getting cigarettes
He's out getting cigarettes
Welp, case closed.
Thanks for closing this yapping
@@aluisious hey grab a gallon of milk on the way will ya?
I clicked fully expecting The Big Short scene with "That's my quant... My quantitative" was not disappointed 😂
It arrived later than expected, but we got there in the end.
Dan. I don't believe you without the trench coat
The flash of Sam Bankman-Fried's face on the Jane Street logo was masterful.
Honesty, if more financial information was presented in this way, I would probably know A LOT more about the stock market and finance in general.
lol the point is for regular people to NOT know.
@@zeobideyeah, you're completely right. The system only works because of the people that have credit debt
@@zeobide
that's just dumb. The system is not responsible for detailed info in a field you don't know.
This is not "basic info" Anything basic is not the system's business😂
That gives room for TH-camrs like this to make money. A weird win if you ask me.
they do statistics all day. the math used in quant finance isn't earth-shattering, it's essentially just graduate level statistics applied in clever ways on massive datasets and really fast computers
Yep, he just added to the mysterious luster with this video 🤦
Stochastic differential equations isnt a part of graduate level maths
@@mdsabilsarfaraz7685stochastic analysis is in fact part of many graduate math programs...
@@mdsabilsarfaraz7685 You can learn about stochastic analysis at any decent master's degree in math in Europe indeed.
@@mdsabilsarfaraz7685 it is in the uk, 3rd year module
At the end of the day, is the quants we made along the way
😂
*The zyncident
In my opinion it's worth the 10 microcents just to not have to think about Nebraska. If i wanted to know the weather there i just go there
With the assumed time traveling machine you obviously posses there are more lucrative information to exploit, then just Nebraska weather, so it checks out
10 microcents per litre is a huge number
Traders are raking in the microcents. I only make nanocents.
The Nebraska pipeline example was unironically interesting
Arbitraging half a cent differences on soybean futures sounded like a joke, but its genuinely the reality.
Glad to see you're alive and well after the Zyn incident
Zyncident
Lol 😂😂😂
This is honestly the realest sounding job so far. Also something I might have actually enjoyed if I had reallised it was an option and was actually motivated when I was younger
It sounds like they're sort of the engineers of the finance world. And as an engineer with a soft spot for finance...yeah maybe I should have done this
@@SilverstrikeSDYes, our phds are often in engineering, applied mathematics, and physics. Or even CS - but that's usually the implementation team. Tools to solve problems in our domain can range from basic stochastic calculus to using quantum theory.. very diverse set of problems and also quite commonly 6-7 figure compensation without the need to give 70 hours to a corporation per week.. not a bad job
@@itooflemma what is best education path to land a job as quant, i am young guy looking for career options so i can analise them for my future
@@emmanuelnaranjo8114mathematics and physics typically. Though like many other jobs right now the required qualifications are becoming increasingly more extreme, nowadays it seems you’d need a PhD or at the very least a first class masters to land a job as a quant. It’s good that you’ve got your eye on it early since it’s definitely a career you need a lot of specific preparation for and many seem to wish they had done stuff to get a quant job but instead did engineering etc. though just a heads up, it’s not this “if you put the work in you can do it”, don’t be shocked if you try your best and don’t land a role, it’s one of the most sought after positions amongst the smartest people in the world so a lot of the people saying they wish they had done it probably wouldn’t have been able to regardless since it’s very saturated with geniuses. Go for it fully, but acknowledge you may need to opt for a backup that also requires maths or physics and pays well
@@itooflemma”quantum theory” 😂😂😂😂😂😂😂😂😂😂😂
Sorry to hear about your second wife, Dan.
she was a heartless b****
She's in a better place now...
...Cleveland.
HIS NAME IS YANG!🗣️🗣️
Everyone knows the best quants don't even speak English
@@ericsun3036 time for a rewatch 😈
Actually, my name's Jiang. And, I do speak English. And... I got second in that national math competition.
@@mjoflaherty126 thats not true. quants are educated, you cant be educated and not speak english in 21st century.
Yikes. Bigoted much.
Quants should not be confused with their five-pointed counterpart, quints.
My quantitave analysis clearly shows the chances of Mr. Dan Toomey becoming the MVP of journalism skyrocketing this fiscal year
We have now fully investigated quants. What should we cover next?
I really love speedrunning history videos, can you do one of those?
Project managers!
forex
Risk management
Yes this! @@faizalahmed5035
Man who solved the market is a great book BTW. Even if you know nothing of finance, it's a very easy read and a fun look at a bunch of PHD geniuses and how they operate (and almost absolutely failed several times).
There’s a deviation between the polynomial fit model and PLTR's market performance, likely due to missing stochastic drift or an incomplete volatility model. Using a skewed Black-Scholes approach with decay could account for market skewness and time decay, but adjustments are needed.
1. Add stochastic volatility using Heston or SABR models, so volatility evolves over time and captures market drift better.
2. Factor in time decay, especially if theta is skewed.
3. Account for implied volatility skew and construct a volatility surface from PLTR’s options market.
4. Use local volatility to allow volatility to change with price and time.
5. Add a stochastic drift adjustment, like a mean-reverting component.
6. Try implementing a time-dependent skew in the Black-Scholes formula.
7. Consider adding jumps with a model like Merton’s Jump Diffusion.
In short, leveraging skew, refitting your polynomial model, and refining your GBDT model could help with the divergence you're seeing. I'd also suggest running a sensitivity analysis on the volatility skew to see if it captures the drift better.
2+2=4
I hate myself for the fact that I understood most of it..Yes I am learning to be a quant
@@ItsVansh2003 I wish I understod 60% of it
Can someone pin this 😂 thank you?
Don't know a single options trader that has become rich from using a jump difussion model or stochastic volatility. Even easier ways out there.
I dont even know where the stock market is headed to right now. my portfolio of around 200k is not increasing more than 5% and people are predicting a downturn
i'd advise you redistribute assets in your portfolio with the help of a pro so you don't get burnt in the market
Accurate asset allocation is crucial, I used hedging strategies to allocate part of my portfOlio to defensive assets for market downturns. Expert guidance is vital for achieving this. This approach has helped me stay finan-cially secure for over five years, yielding nearly $1 million in returns on invest-ments.
pls how can I reach this expert, I need someone to help me manage my portfolio.
*Marissa Lynn Babula* is the licensed advisor I use. Just search the name. You’d find necessary details to work with to set up an appointment.
Thank you for the lead. I searched her site up and filled the form. I hope she gets back to me soon.
how is it possible that this channel is this funny, this interesting, and this well sourced and well written? how tf is this even possible? pls continue to grow fast so you can make hundreds and thousands more of these delicious mind explosion vids
I can't get enough of him reporting next to piles of trash.
@@DR12377 Somehow 0:52 when he was sitting by the tree was even more chaotic
I think investors should always put their cash to work, especially In 2025, we'll start to see more market diversification. I'm hoping to invest about $350k of my savings in stocks next year. Hope to make millions this 2025.
It's crucial to have a well-thought-out strategy and not make impulsive moves based on short-term market fluctuations. You should consider a market expert to guide you.
It's true that many people minimize the importance of advisers until their own feelings burn them out. A few summers ago, following a protracted divorce, I needed a significant boost to keep my business afloat. I looked for licensed advisors and found someone with the highest qualifications. She has contributed to my reserve increasing from $275k to $850k despite inflation.
I'm intrigued by this. I've searched for financial advisors online but it's kind of hard to get in touch with one. Okay if I ask you for a recommendation?
Certainly, there are a handful of experts in the field. I've experimented with a few over the past years, but I've stuck with Sophia Maurine Lanting for about five years now, and her performance has been consistently impressive.She’s quite known in her field, look-her up.
Thank you for this tip. It was easy to find your coach on web. Did my due diligence on her before scheduling a phone call with her. She seems proficient considering her resume.
I had a six month developer stint at Renaissance in 1995. I was there because I knew J - a dialect of the APL programming language. The language R was just getting popular. That company was led by Jim Simons who was celebrated in the WSJ. . In the mid 2000s Renaissance paid a big fine to the SEC which nearly equaled their profits from the beginning of time. In the 90s the company had daily trades in the tens of millions. Backgrounds varied. One Quant I knew had a Phd in Physics. He was good at using Mathematica to make graphs.. He knew the investment algorithms. Each evening computers would predict changes for the market the next day. There was a daily actual vs expected. The firm had only 30 employees. At that time offices in Walnut Creek Ca and Rhode Island. Jim mostly worked from Road island and Sandor and Harry lead up CA. Sandor did the hiring and he looked for a Masters in Operations Research just out of UC Berkeley. A fresh grad with a Masters in Mathematics owned purchasing commodity contracts.
Genuinely the best finance/business news channel in the biz.
Even without the trench coat.
Interestingly enough, Dan's answer to that last question is 100% the answer any quant worth their salt would give.
Dan Toomey - Excited by edging
Aren’t we all
Bring back the trenchcoat Danlock Tolmes
I'm a risk quant in a top tier IB. Another point to mention is that there are a lot of different types of quants. Buy side, sell side, high frequency, low frequency, pricing, risk, assets allocation, hedging strategy, and model validation etc. The nature (and pay) are very different.
What should I study to get a job as a quant?
@yourkekko3226 regression, Stochastic process, financial maths courses (option pricing, VaR, portfolio theory, portfolio replication, utility theory), basic econ, basic accounting, machine learning, time series, numerical analysis, computer sci, basic data sci, PDE, linear algebra, probability theory etc.
Finance? Lacrosse Stick? NDA ? Duke 2006 ?
3:52 "And he gave it all up to make hundreds of millions of dollars" - what a selfless public servant!
Are you a public servant? Why should he be?
Good Work Dan, I hope you never stop making these.
In Australia, people say “quant” all the time
Often either preceded or followed by "Oi"
Is it spelled that way or dies it start w/ a 'cu' in Aus?
What a sick quant aye?
@@MikeStoneJapan that’s terribly rude
😂
The S&P 500 moved 8.9% higher last Month, achieving one of its best monthly performances in history.. which is an indicator for profits to continue to improve. I just want my money to keep outgrowing the inflation rate. I'm still looking for companies to make additions to my $500K portfolio, to boost performance. Here for ideas..
I think the safest strategy is to diversify investments. Like spreading investments across different asset classes, like bonds, real estate, and international stocks, they can reduce the impact of a market meltdown.
I self-managed but suffered heavy losses in 2022 so I knew I couldn't continue that routine. I consulted a fiduciary financial advisor & by restructuring and diversifying my $610k portfolio with dividend-paying stocks, ETFs, Mutual funds, I significantly boosted my portfolio, achieving an annualized gain of 35%.
How can I participate in this? I sincerely aspire to establish a secure financial future and am eager to participate. Who is the driving force behind your success?
Thank you for this Pointer. It was easy to find your handler, She seems very proficient and flexible. I booked a call session with her.
Bro book now ,!
I pray that one day I get to see Dan filming one of these on my way to work.
SNL should pick up one of your episodes. You're spot on with comedic timing and the information is actually important.
this channel is the only news channel I watch, great stuff
I really really really love this type of comedy
Simple. Finance = perception. Math & Asian in glasses & complex structures = the perception of being smart. The perception of being smart = big bucks AUM. QED.
Complex. Returns != perception. Try to con markets into giving you better returns = likely get average/below-average returns. Average returns = small bucks. Needs further research.
@@oleg4966finance prof? Figured
@@oleg4966 hold on let me quickly call the benchmark committee to change up the composition and time horizon backed by carefully selected academic papers to bring us above "average".
The first time I heard of the term was watching The Big Short when I was 15 years old lol
'That's my quant, my quantitative, my math specialist! Look at him. Look at his face. Look at his eyes! His name is Yang! He won a national math competition. IN CHINA!"
Thank you for telling me what my job title means. I’ve just been playing games on my calculator the whole time.
Then what do you do as a quant?
@@lylemcdermott2566 number stuff
Dan is so dashing as in he dashes to and fro to dish on topics that matter.
guy who gave the explanation about the pipeline actually explained it super well i was surprised when it cut to him saying he had no idea what the guy was talking about
That ending skit was pretty awesome, and made me feel below average 😂!
I cannot express on what level this combines knowledge of the people and honour. Imagine every night late show would have this level of insider references and knowledge about the topic, our world would just be better
I AM SAYING IT
JIM SIMONS IS THE PIONEER
When Dan Toomey speaks, people usually listen.
Basically predicting the future using math
I only now knew that you are the creator for morning brew! I subscribed for i think more than a year by now. Thanks
Quants are 4.0 gpa math grads with Masters in financial mathematics or PhD. Experience in using algorithmic models to try and predict the financial markets. Can make millions..even billions
Not all of them! one of my friends from the firm i work at is actually a high school drop out and works in quant, he was already successful with finance before he was 18 tho so he’s not a normal case but you don’t need much other than experience, they don’t look for degrees much anymore, they want to know you can do it is all they care about, show your results and they hire you, if you can’t hang you you get dropped, it’s simple
@@inducement top quant shops is impossible without a MSc. Even the math grads will struggle
@@davidc4408 agreed, i struggled to get into it and i actually worked for free as a researcher before i got in fully, but yes that’s true but as i said my friend is a needle in a haystack the size of mount Everest, he grew up in finance and was on a math team for school til he dropped out bc he in his words “no longer needed it” as he was trading with algorithms he made already and when he was 21 he went into quant, he is a math and finance nerd and it’s almost all he knows, top math grads are not that and most don’t qualify for quant work as it’s not all math, much more goes into it that they don’t have, you can be hard decent at math bc fun fact, we all write programs to do the math for us anyway, we just do the inputs, it’s predominantly programming work, not much math anymore, most of my work is using ML & NN lol
@@davidc4408 for some reason my reply didn’t post.
but, my friend is a needle in a haystack the size of mount everest and no, most quants are actually CS majors lol, i my self majored in financial engineering, along with most of the people i work with, i use math but not as much of it is manual, almost all of it i’ve automated, and pretty much every quant is using predominantly ML & NN to work
@@inducementyou will literally instantly get rejected by the automatic CV screening if you are a high school drop out lol. Top quant firms only hire from certain Universities and they have extremely high standards in terms of grades.
It’s not just that Jim Simmons was secretive. It’s that the medallion fund was employee only which meant it was a very small fund. Under 5B. That’s nothing. It needed to be small to make those big returns. Otherwise it didn’t work. Their public fund performs significantly worse but has more money.
I don't believe you 😂
@@MohdFaizan-qx7xl it’s public info you can Google it yourself.
Idk why but that 1:55 papa journalism slayed me 😂😂😂
Making money is not the same as keeping it there is a reason why investments aren't well taught in schools, the examples you gave are well stationed, the market crisis gave me my first millions, people shy away from hard times, I embrace them.. well at least my advisor does lol.
I agree. There's a lot of potential in the market.
My friend introduced me to a financial advisor in 2023 Professional Chrissy Barymoer and even though I was skeptical, I went on. I finally was making enough monthly dividend to quit my soulless job and pursue my dream to start a restaurant in New Jersey and still earn five figures in monthly dividends.
Hello, I’m 37 and I am not worth much yet , please help me out. Bought my first house last month and I can't seem to make any other smart investment.
Search him by His name "Chrissy Barymoer"
On f.a.c.e.b.o.o.k
He always replies just be patient. He has the best approach to business.
Interesting but you're describing quant traders really. regular quants/ quantitative analysts are more on stochastic calculus and pricing/ hedging options (from a former quant ;-) )
King Dork had me spillin' in my lap.
had you what
@@GoodWorkMB spillin' my Sketti-O's on my jorts
Thanks for clarifying
@@NathanGilmour-e3o That answer is almost as unhinged as your original comment
This was soooo funny man 😂. Thank you. I just subscribed. Someone dropped this clip in our ARCrypto School chat. 💬 I love it. Thanks.
I come for the jokes, stay for the surprisingly interesting interviews and theme
I love that dan always films on the dingiest streets he can find
Basement lurking money droids is gold
btw if anyone is curious about an explanation about what the last load of jargon means from an actual quant.
He is dealing with options on PLTR (ticker for Palantir Technologies), using the third derivative of the option price (ultima).
His current model (gbu), which uses a polynomial fit, seems to be underperforming.
He is considering implementing a Black-Scholes model(famous model for options pricing) that accounts for decay and skew, but you feel that there may be some randomness or drift in the underlying data that your current model is missing.
I have not heard the term 'GBU' its either a custom tool or model used by the firm in question or a typo and he meant to say GPU which makes sense it context.
I am at the beginning of my "investment journey", planning to put 85K into dividend stocks so that I will be making up to 30% per year in dividend returns. Any advice?
Investing without proper guidance can lead to mistakes and losses. I've learned this from my own experience.If you're new to investing or don't have much time, it's best to get advice from an expert.
The issue is people have the "I want to do it myself mentality" but not equipped enough for a crash, hence get burnt. Ideally, advisors are reps for investing jobs, and at first-hand encounter, my portfolio has yielded over 300% since 2020 just after the pandemic to date.
Glad to have stumbled on this comment, Please who is the consultant that assist you and if you don't mind, how do I get in touch with them?
My CFA NICOLE ANASTASIA PLUMLEE a renowned figure in her line of work. I recommend researching her credentials further... She has many years of experience and is a valuable resource for anyone looking to navigate the financial market..
I just googled her and I'm really impressed with her credentials; I reached out to her since I need all the assistance I can get. I just scheduled a caII.
9:14 BLUE RSX SPOTTED
I wanna thank flash traders for obliterating my elderly coworkers retirement during the 2010 flash crash when their accounts all sold when the market crashed and then recovered by the end of the day.
how was her retirement obliterated when the market recovered less than 2 hrs later? did she somehow immediately sell her entire retirement portfolio in those 2 hrs? was her retirement invested in a quant fund?
@@sereysothe.ayes
@@sereysothe.a It sounds like she had placed a 'stop loss order.' This is a good example of why they're a bad idea.
Crash coming
Was this a pension fund? Were they trading her money without her knowledge?
Fr, solving puzzles is so fun regardless of if you’re in enterprise and industry, or in government
I am a simple man, I see good work videos. I hit like 👍
None of whom were afraid to give it to Papa Journalism fast and straight
The best quotes come from Good Work
The more videos I watch the more happy I become that I discovered this masterpiece of a channel
Worthy of a TV show
Great quality 👍❤
Keep up the good work
We got Dune Mentats before we got GTA 6
I’m a computer science student who loves math. I always thought about what other jobs I may love and maybe this one might fit that niche ! thank you!
Quant - “So you know how ice cream sales go up in summer? Imagine if there are millions of other such events we don’t notice or understand yet. Quants are supposed to discover those with math.”
That's very well put as a way to describe what Quants do.
I'm over here trying to figure out how to transition to a career in the trades without going broke and we have guys fresh out of college making $500k
Yeah but I've never met a quant who can bench 225 😂
This video gave me a coke addiction somehow
For me just Adderall
all the quants I know are skinny computer nerds who play catan or poker on the weekends
This is good. I want to become a quant, and this is a great introduction to my future career
I have more questions then answers
1:23 Putting the ad after saying moolah makes Dan the biggest nerd of all
I thought I was used to the background/location gag but Dan sitting on the little tree railing took me out 😂
9:08 is this man in the background yawning or simply in awe at seeing dan in the wild?
Woah, I was watching the video and I was expecting you to be one of those huge channels you never heard of before but stumble across and love lol, you deserve wayy more subscribers :)
Dan and Henry simply do not miss
5:08 “passionate about edge” 😂
So basically quants do inside trading without actually doing inside trading.
Watching this live from the GS bathroom, good stuff
I still don't know what Quants do. But now I know that Quants also don't know what they do.
Did you watch the same video that I did? I thought it was pretty clear lol
they do maths and coding
They do statistics and machine learning to find correlations between markets and gain an edge
MF DAN TOOMEY NEVER DISAPPOINTS 🙂.
Shogun fan, nice. Watched this bc I’m an advisor and headed to a conference downtown tomorrow for the rest of the week. Quants are a mix bag of people rn but that’s more of a sign of the times in the industry. I’d rather make my own schedule and grind my way to taking down a similar comp if not more in certain years. Math is a nightmare for me and I’d rather not pull those hours per week to “code and do math” lol.
Great video, easy sub 🤙🏽
One of the best satire-journalism today! Learned so much while laughing
Jim Simons is a really interesting chap, as are quants.
Good work, Dan.
In short, they are trying to find the causality from a not random assignment of a random sampling which is impossible by the definition but it had never stopped quants before.
but they do have sound theorems.
@@ege8240 Mainly assuming majority of the time that the spread will eventually close out (LTCM case study) or that the prices will revert to their mean values (multiple cases of blown up financial vehicles).
The only case that is indeed intriguing would be the Renaissance, but the problem about it is that Jim took the secret sauce to the grave with him.
I appreciate this because I remember that showstopper day in philosophy class when we were talking about Berkeley's suffering as he wasn't able to confidently say the sun would rise tomorrow because it was predicated on inductive reasoning. Wah wah wah.
@DR12377 Well yeah, I mean the black swan events are always probable but to what extent? Observations do help us establish the relationships but are never indicative of causality, which could in turn be established by an experiment. Quants, who are heavily engaged in all sorts of statistical arbitrage, don't conduct any experiments whatsoever, they just assume that the relationship and/or association could be somewhat equal to causation for the sake of a model incorporation convenience. It does work a lot of the times, but then it doesn't and almost every time it ends up in a disaster of sorts.
I love this channel so much
Watching the video waiting for Patrick Boyle to show up!!
I was seriously expecting to see Dimitri Bianco interviewed (not merely a split second of footage ripped from his channel), as in my opinion he's the best Quant channel on TH-cam
7:33 Nice choice of background music 🤣
I saw the thumbnail and said good work😀