Quants | The Alchemists of Wall Street | VPRO documentary - YouTube

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• trading for what you need math skills it used to be you know historically you just have like floor traders and brokers you know screaming and shouting down on the floor of exchanges and trading stocks you know and the order came down and they would run up and they sort of a muscle there he added we're a different color jackets you know the classic pictures we've we've all seen Matthew Goldstein almost obscene list for PES below Reuters do same from the ears to the Kefauver format high-frequency trading on cotton the reality is so much

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• if you say to me the d by d big t version because we want them we are trying to find the stochastic differential equation not for log said so you're going to end up with new minus 1/2 Sigma squared let me backtrack it a wee bit here and we have a stochastic differential equation for Z then we can also write down stochastic differential equation for F there was a very very short period of time when conser in the doghouse so to speak the people were saying but all banking is changed forever a Kwan serveth I've finished

• there'll be no more these credit instruments and I said you know second guys you really don't know your history you don't know human nature this will all blow over you know in a matter of months because we're back to the big bonus is everything goes back to as it was if people don't complain now then it serves them right when the next financial crisis happens twelve hours to go before the evening classes start I feel United with my classmates but the enormous workload it's actually the fees

• that we're trying to maximize right of course we have to maximize returns we have to do a good job in managing their money otherwise where we're going to do pretty poorly at collecting those fees I wanted to feel challenged again and enrolled in a quant program it cost me $60,000 tuition which means more debt that I now have to take on the incentive fee structure basically means that maximizing the twr is like maximizing fees think about that that's kind of tricky this course is a year and a half

• full-time one and a half years no salary expenses living in downtown Manhattan plus paying full-time tuition so no alcohol for me not a drop at least till the end of the first semester I can't afford to lose a day to a hangover hardly any social life for the time being most of the other students are Asian or East Europeans math is their first language and our common language we Americans are the minority maximizing the number of times that we're going to penetrate the previous high-water mark we're actually maximizing incentive so

• you can see that this this type of optimization is very hedge fund like does everybody get it so far used to be the physicists were splitting the atom whose splitting the atom these days building bridges who is people building bridges everybody wants to move into this field scientific creativity is becoming financial creativity which is all of the bogus Kwan's are essential to modern banking because so much of it is based upon new techniques like the latest thing is the algorithmic trading that high-frequency

• trading for what you need math skills it used to be you know historically you just have like floor traders and brokers you know screaming and shouting down on the floor of exchanges and trading stocks you know and the order came down and they would run up and they sort of a muscle there he added we're a different color jackets you know the classic pictures we've we've all seen Matthew Goldstein almost obscene list for PES below Reuters do same from the ears to the Kefauver format high-frequency trading on cotton the reality is so much

• ou know screaming and shouting down on the floor of exchanges and trading stocks you know and the order came down and they would run up and they sort of a muscle there he added we're a different color jackets you know the classic pictures we've we've all seen Matthew Goldstein almost obscene list for PES below Reuters do same from the ears to the Kefauver format high-frequency trading on cotton the reality is so much