mrchicity

6 ms·

1.
by mrchicity 7y ago
I've thought a lot about this too (I used to work in HFT). Here's what I think: - The only part I didn't like in your article was how you described creating indicators as exploitation. The limit order book is public by design
2.
by mrchicity 7y ago
You ask a great question: If a business isn't able to employ American workers at competitive pay, what purpose does it serve for the country? Why should it be here or exist? I have sympathy for cash poor startup founders, but offering
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by mrchicity 7y ago
And doing that may put downward pressure on wages for ordinary Canadians. Their citizens vote, too. I don't think offshoring to India is a real worry. They lack the rule of law and stable business environment of countries like the US a
4.
by mrchicity 7y ago
That's great that you don't do that. Sorry if this is blunt: Paying low 100s + de minimis equity for distributed systems and DSP engineers in a super high COL city like LA is going to be a hard sell for most. People with real expe
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by mrchicity 7y ago
If they could hire someone locally at their desired level of pay, they wouldn't. But while a legitimate talent shortage (at any price) may exist for super elite, specialist roles, there are plenty of citizens who can do typical enginee
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by mrchicity 8y ago
RenTech doesn't publish much so I'm merely conjecturing based on their volumes and other information that's in legal filings. There are a lot of ways to provide liquidity and fair pricing over diverse time horizons. It doesn&
7.
by mrchicity 8y ago
Commercial work will always pay better than academia. Roles like trader/quant where your value is measurable & portable will always pay better than being a drone in a big machine like Google. If anything, front office finance roles
8.
by mrchicity 8y ago
It's the law of large numbers. Virtu's infamous net trading profit histogram showed the firm had one losing day in over 3 years: https://www.zerohedge.com/news/2014-03-10/holy-grail-trading... (1) Agai
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by mrchicity 8y ago
Return on capital isn't a super meaningful metric for capacity constrained trades. If a fund earns 80% returns, but has no means to compound the resulting profits through the same mechanism, whoever receives them naturally puts them in
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by mrchicity 8y ago
Money quote on page 345: "In the second study, Mosing, Madison, Pedersen, Kuja-Halkola, and Ullén (2014) had over 10,000 twins representing an extremely wide range of music skill estimate deliberate practice and perform tests of music
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by mrchicity 8y ago
Most people know this on a visceral level. If you only live for yourself, you'll never be satisfied: There's always someone with more. I definitely had some kind of seeking feeling but couldn't put my finger on what I was mis
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by mrchicity 8y ago
I won't comment on better/worse since I have no idea what op meant and it also makes no sense to compare. Having children is a fundamental human right. It's a shame that people who are capable of doing so, and want to do so,
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by mrchicity 8y ago
Yes, it's a very complicated situation though. I see a few causes among my peers: -College alone, except for a select few schools and/or majors, is no longer a strong signal for getting jobs. My wife went to a good state school an
14.
by mrchicity 8y ago
This. Not having children sooner is one of my deepest regrets. My wife and I had our first when we were 30, and luckily, another through IVF, which is far more complicated, painful, emotionally draining and expensive than you'd expect
15.
by mrchicity 8y ago
Insurance is an apt analogy. Intuitively, if someone consistently makes money, they're just skimming without providing any value. People were astonished that Virtu made money almost every day, but wouldn't care if GEICO made money
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by mrchicity 8y ago
That's fair, but the reason isn't entirely due to bias. Few people outside the industry really understand market microstructure. It's a dry and complex subject. Legitimate criticisms are pretty subtle and get lost in the nois
17.
by mrchicity 8y ago
Some rich heir being a shoe in at Harvard where he skips half his classes and takes a spot from someone with academic interests bothers me too. It's not fair. But I'm a bit less skeeved out by a school administrator judging someon
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by mrchicity 8y ago
Is that surprising though? There's a strong correlation between pay and intellectual ability/education. There aren't many dull, uneducated engineers, doctors, lawyers, or executives. If intelligence is at all heritable, you&#
19.
by mrchicity 8y ago
Sure but you're fighting a strawman here. Nobody believes standardized tests are perfect or 100% accurate at determining ex post performance. We all know people who score well but lack discipline. People who support quotas don't m
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by mrchicity 8y ago
Yes, instead we have holistic approaches which schools refuse to document for proprietary competitive reasons, and that holistic process has the same outcome as a racial quota. Very odd case.
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by mrchicity 8y ago
Why are they unfair? I've heard the old saw about the 1980s SATs asking some analogy with a regatta:yacht, but what bias has been uncovered lately? And why is this bias mostly helping Asians, a minority group, who more likely to be lea
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by mrchicity 8y ago
I agree totally. Tests can be slightly flawed, and rich kids can prep their way to another 50 points, but nothing else in life comes close in terms of fairness. Maybe sports and that's it. There's something noble about that. Tell
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by mrchicity 8y ago
Good schools are mostly good because of their student bodies. At a basic level you need teachers who care, books and decent accommodations. If those basics aren't being met, then spending will help. And if those needs are met, it certa
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by mrchicity 8y ago
It was wrong decades ago when the Ivy League had a soft cap on the number of Jewish students admitted, and it's wrong now when schools effectively do the same for Asians. They can nudge-nudge-wink-wink "Holistic approach" all
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by mrchicity 8y ago
1.) If you do it proportional to shares, then it introduces bad incentives to oversize orders. There's a reason why almost every market in the world uses price time priority in a realtime two sided auction. 2.) What problem does this s
26.
by mrchicity 8y ago
They would simply vaporize. At the margin, people trade because the frictional costs (spreads, fees, pricing/tracking error, risk) of trading are low. Fewer people would trade. HFTs basically play an intermediary role: risking capital
27.
by mrchicity 8y ago
Interesting idea, but how would you deal with these issues: 1.) Randomizing who receives contentious trades will just encourage order splitting and gaming. Sure some of that can be banned, but nothing stops big firms from putting each tradi
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by mrchicity 8y ago
Different situations so I doubt it has anything to do with GS nepotism. Knight couldn’t cancel their bad trades because most weren’t clearly erroneous, based on exchange rules. If the market was bid 20.01 offered at 20.02, Knight’s test pro
29.
by mrchicity 8y ago
Totally agree. Better to use the carrot than the stick, but it never hurts to have the stick as a backup plan. Typical problem in finance is you have consistent top performers who are compensated very well and would never leave, you don&#x2
30.
by mrchicity 8y ago
This is true in theory but not in practice. I know of a few (somewhat disreputable) big law firms and prop/hedge funds that primarily hire from competitors. They can offer better partnership terms or pay because they don’t spend on res

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