A $16B hedge fund CIO gives an easy explanation of quantitative trading

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  • Опубліковано 16 сер 2017
  • Ryan Tolkin, the CIO of a $16 billion hedge fund Schonfeld Strategic Advisors, helped us understand what quantitative trading actually is.
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КОМЕНТАРІ • 69

  • @QUANT_Trader88
    @QUANT_Trader88 2 місяці тому +4

    Implementation methodology
    a repeatable and successful approach to implementing solutions across industries and customer environments

  • @grimx5772
    @grimx5772 7 років тому +46

    Wallstreet and hedgefunds like to use big and complex terms to make investing seem hard and only they can do it correctly. If they are so good, then why are index fund beating most of the mutual and hedge fund returns? My returns percentage so far in my individual trading account is greater than most hedgefund. Also keep in mind public companies have their quarterly earning reports online for anyone to read, so take the time to read them and understand the company before investing or even shorting. Teach yourself how to invest and stop giving these salesman of wallstreet your money.

    • @root.li.23
      @root.li.23 3 роки тому +27

      I work at a hedge fund, and I can tell you that the reason is that the proprietary accounts’ performance metrics aren’t made public. This is because the AUM comes from employees’ savings as opposed to outside investors. These accounts usually are allocated the best strategies which often deliver >30%/year on Sharpe ratios greater than 4. Due to their proprietary source of funding they are not required to disclose performance numbers to the public press. The most famous of these prop employees accounts is Medallion by Renaissance Technologies. Its performance is pretty much known because of its legendary returns, but there are many other funds with extremely high performing employees funds that no one knows about.
      The second reason is what I would call “size bias”. The returns of the largest hedge funds tends to be more public than the return of small hedge funds (small as in, less than 10bn AUM). Because trading isn’t a scalable business, the larger funds will perform worse than the smaller funds that can afford higher turnover rates, making it seem like the hedge fund industry doesn’t perform well.

    • @annajones9701
      @annajones9701 3 роки тому +3

      @@root.li.23 Hi, agree some very valid points on fund size. What average annual returns is your fund returning? Thanks

    • @RabianskiT
      @RabianskiT 3 місяці тому

      ⁠​⁠@@annajones9701
      His returns are probably amazing… but if you subtract fees/ commission and other expenses, you’re probably better off buying index funds 😜
      In my opinion, the primary benefit of using a hedge fund/ portfolio manager is appropriate risk management and personalized strategy.
      Not the returns.
      Returns are usually related to RISK - for some, safer 8% is more optimal than riskier 20%.

  • @jesusvillalobos3468
    @jesusvillalobos3468 7 років тому +5

    Hey i just tried to buy stock in an Australian bank on Vanguard and the symbol was unrecognizable. Anybody been through this and figured out what you have to do to buy foreign securities on Vanguard?

    • @sreenirajan7229
      @sreenirajan7229 4 місяці тому

      You can only buy the ADR share of international security.

    • @darunehilmes9469
      @darunehilmes9469 2 місяці тому

      @@sreenirajan7229 wow I don't think he/she sees this comment.

  • @mintukalita7954
    @mintukalita7954 20 днів тому +3

    VERY SIMPLE, YOU JUST NEED A SUPER COMPUTER COSTING MIGHT BE BILLION TO EXECUTE MILLION OF TRADES IN A MATTER OF SECOND.

  • @astro1253
    @astro1253 2 місяці тому +3

    It’s all market inefficiencies and Liquidity captures hence the power of 3 1.accumulation
    2.manipulation (manual maneuver, news price manipulation)
    3.Distribution
    the institutional order flow
    Master market structure from macro level to micro level
    Master the times zone price moves in the most volatile and volumes times NY session AM & PM EST time no trading in market lunch hours which is 12:00 PM EST - 01:00 PM EST

    • @anooprs1988
      @anooprs1988 Місяць тому

      Ict

    • @ayamurayama3961
      @ayamurayama3961 Місяць тому +1

      That’s ICT not Quant. There’s no ICT traders in hedge funds. They use SCIENCE lol.

    • @anooprs1988
      @anooprs1988 Місяць тому

      @@ayamurayama3961 do you know wat quant really is?? lol..

  • @PrawnzHD
    @PrawnzHD 7 років тому +8

    What's the difference between quantitative investing and investing in those robo-funds controlled by ai?
    This video is definitely unclear and his explanation feels extremely unfinished.

  • @garysimpson7326
    @garysimpson7326 5 місяців тому +3

    I stick to dollar cost averaging.

  • @HaiLeQuang
    @HaiLeQuang 7 років тому +12

    What are some of the best books on quantitative investing strategies I can read on?

    • @ty814
      @ty814 4 місяці тому +1

      The Man Who Solved the Market: How Jim Simons Launched the Quant Revolution
      by Gregory Zuckerman

    • @Thewinners-circle
      @Thewinners-circle Місяць тому +2

      My guy learn statistical analysis. Learn statistics for mathematical probability analysis

    • @aviralsharma2005
      @aviralsharma2005 Місяць тому

      ​@@ty814 lmao that's not gonna get you into QuantFin. Stats, maths, and a lot of probability theory is what you need. Then you learn to program and get very good at it - or at least enough to make your own models in python.

  • @lilrexy6088
    @lilrexy6088 7 років тому +2

    I want to start daytrading. Any day traders out there want to tell me anything? (Tips/teach/anything)

    • @joshreilman247
      @joshreilman247 7 років тому +9

      RichyRichGames Don't do it.

    • @johndrake299
      @johndrake299 7 років тому +3

      Don't listed to Tim Sykes

    • @Joe-zw9ep
      @Joe-zw9ep 7 років тому +2

      I day trade for a living +RichyRichGames. Learn first then trade, also have no emotions whilst trading, it's more simple than people make out.

    • @imjudgingyou7271
      @imjudgingyou7271 7 років тому

      Invest in what you know

    • @athousandwords5469
      @athousandwords5469 7 років тому +1

      Hey man, I've got this really great penny stock, I think it's really gonna take off.

  • @johnatanfx
    @johnatanfx 5 місяців тому

    Are Prop Firm Challenges a Scam Yes or No? Which ones can we trust 10%?

    • @ayamurayama3961
      @ayamurayama3961 Місяць тому

      Topstep but that’s if you actually get out of forex. Futures reigns overall

  • @SimbolicProductions
    @SimbolicProductions 7 місяців тому

    Sounds like it adds a lot of value to every day people of the world LOL

  • @epicurusone6897
    @epicurusone6897 7 років тому +37

    As clear as mud.
    So badly explained. He should be ashamed that he has failed in explaining an idea to people other than experts.

    • @eduard-adrian4778
      @eduard-adrian4778 3 місяці тому +1

      They set a framework run investments through it on a computer and the computer tells them what and how to buy in ordet to eliminate human emotion

  • @tonygeo
    @tonygeo 7 років тому +4

    This sounds like a robot?

  • @barbaracovey
    @barbaracovey 7 років тому

    I still don't what it is. 🤔

  • @TheBatman2022DC
    @TheBatman2022DC 7 років тому +40

    Cant understand it?, Dont worry your not supposed to!!!

    • @samlansky6159
      @samlansky6159 5 місяців тому +11

      His basically saying they’ve got ai trading bots that does the trading for them so there’s no emotions involved

    • @bolcobaba
      @bolcobaba 5 місяців тому +4

      Whats so hard in it

    • @bolcobaba
      @bolcobaba 5 місяців тому

      ​@@samlansky6159no man , not exactly like this

    • @chiomaobunadike3313
      @chiomaobunadike3313 4 місяці тому

      Everyone does

    • @owoFlygon
      @owoFlygon Місяць тому

      Surprise surprise, some things you have to try to understand.

  • @Gonz0131
    @Gonz0131 7 років тому

    This is only relevant if the market is rational, which it isn't.

  • @Anna-de8pd
    @Anna-de8pd Рік тому +13

    Trading is a compounding game. I'm getting 8% ROl per week from hedgefund. This is 32% in a month and I consider this very realistic and OK.
    But the problem is most traders are so greedy and that's why they keep blowing up because they want to turn 100 to 5k in short period. I'II just encourage more traders start going with hedge funds and you'll see the growth

    • @leno2347
      @leno2347 Рік тому

      Waoh
      Which hedge fund is that??!

    • @Anna-de8pd
      @Anna-de8pd Рік тому +1

      0N tteelleeggrraamm

    • @Anna-de8pd
      @Anna-de8pd Рік тому +1

      Bullhedgefund

    • @Anna-de8pd
      @Anna-de8pd Рік тому

      BULLHEDGEFUND

    • @napoleonpon2480
      @napoleonpon2480 11 місяців тому

      ​@@Anna-de8pdhow much capital did you get from them?

  • @upgrader99
    @upgrader99 7 років тому +1

    This was an ad for "Why you should put your money into the stock market."
    ps - dont.

  • @Baba_Hedge
    @Baba_Hedge Місяць тому

    Schoenfeld is a jock of a Hedgefund.

  • @murtr6565
    @murtr6565 7 років тому +25

    I dident understand shit

    • @VidsAccount123
      @VidsAccount123 7 років тому +2

      Basically, one says you are confident in making a certain decision, and the other says you are a certain percentage confident in making that same decision.

    • @brandonaldred
      @brandonaldred 7 років тому

      Either way, the decision depends on people. If they knew the stock was going to go somewhere, the stock price would surely move now - not in the future. Rational decisions & emotional people, that sounds like a recipe for success.

    • @aintnoslice3422
      @aintnoslice3422 7 років тому

      +VidsAccount123 So why is it called 'quantitative trading'? I would of assumed it refered to 'quantity'.

    • @VidsAccount123
      @VidsAccount123 7 років тому +1

      Say you have two people investing in stock from the same company. The person who is using a discretionary strategy would use previous experience to eyeball the amount to buy and sell, and when to do so. The person with a quantitative strategy would be using a computer (along with an understanding of statistics, mathematics, economics, and computer science) equipped with software that would give them best time to buy and sell and how much (this is where the 'quantity' comes in). Sometimes, even the computer will do it for them automatically.
      As a bonus, you can see that with the advancement of artificial intelligence, positions where people are picking out stock would become obsolete, since AI would give you the most optimal and consistent results. Hope this helps.

  • @roysmith9149
    @roysmith9149 8 місяців тому

    A computer a.i makes the trading decisions not a human

  • @willywonka077
    @willywonka077 6 місяців тому +3

    So basically a computer is doing there trading why not just say that!!!!! I want the program that does this so i can buy it

    • @RocknRobby
      @RocknRobby 6 місяців тому +1

      Right bro tried to sound as intelligent as possible 😂😂

  • @jeff-hh9mc
    @jeff-hh9mc 4 місяці тому +1

    He’s speaking jibberish in order to convince people he’s smart and to turn over their money.

  • @ryak2
    @ryak2 Місяць тому

    What is that haircut? Why even bother wearing a suit if you're going to wear your hair like that?