The murmur of the snarkmatrix…

August § The Common Test / 2016-02-16 21:04:46
Robin § Unforgotten / 2016-01-08 21:19:16
MsFitNZ § Towards A Theory of Secondary Literacy / 2015-11-03 21:23:21
Jon Schultz § Bless the toolmakers / 2015-05-04 18:39:56
Jon Schultz § Bless the toolmakers / 2015-05-04 16:32:50
Matt § A leaky rocketship / 2014-11-05 01:49:12
Greg Linch § A leaky rocketship / 2014-11-04 18:05:52
Robin § A leaky rocketship / 2014-11-04 05:11:02
P. Renaud § A leaky rocketship / 2014-11-04 04:13:09
Jay H § Matching cuts / 2014-10-02 02:41:13

Inside the Black Box
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The best thing about it only being January 10 is that I can say, without reservation, that this is the best thing I’ve read all year: n+1’s interview with a hedge fund manager. It includes a useful window into a little-known, but super-interesting, component of modern markets: quantitative trading driven by computer programs!

n+1: And so the computers themselves are making these trades?

HFM: You build the models and the computer does the trading. You actually do all the analysis. But it

4 comments

dan says…

Black box trading automation is a major business, and successful companies are making lots of cash doing it. I declined an engineering job at a start-up automated private trading company in LA because I wanted to move up to SF. I had some friends who did work there and their bonuses were over $100k the first year. Not only is that a note for the Right Way to treat an engineering team that is building your money-making algorithms by working 16-20 hour days, it’s also a pretty sure sign the company is pulling in mega-profit.

(Side note: living in SF totally worth bailing on a 6 figure bonus.)

checkout wealthlab (http://www.wealth-lab.com/) now owned by fidelity. it does some “blackbox” trading for me.

Ah! I was just thinking that there’s got to be some sort of collaborative ‘Web 2.0’ product in all this! Although that app looks (sort of awesomely) old-school and not 2.0 at all.

WealthScript! I love it.

So how does it perform? This site seems like a recipe for the kind of ecological homogeneity that the hedge fund manager talks about re: the big black boxes — if only b/c people are using the same tools, techniques, etc. But maybe not?

robert evans says…

one of the best is http://www.marketlogicdatacorp.com

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