Good day Traders!
In an interesting niche is one of the most efficient funds - Medallion. Their system has only 51% of profitable entries (so claim the representatives, I have to admit I have a few different opinions on this). This discourages others quite effectively but Medallion alone earns about 7 billion a year with an equity of 10 billion.
Medallion's system covers dozens of markets and hundreds of instruments. Every day the automat inserts, according to different data, from 200 to 300 thousand positions. I will write it in words, so that there is no doubt: from two hundred to three hundred thousand positions a day. This high number is due to the fact that the machine adjusts the entry size to the current liquidity.
After the signal from the system, the machine splits the position into 200, 300, 500 smaller positions and enters it smoothly adjusting to the current available liquidity. The aim is to minimize costs and minimize the adverse move.
Analyzing the Medallion system and strategy is always a lot of fun, it is a fantastic challenge to try to understand what brilliant mathematicians have built.
In every aspect from signal identification to execution it is certainly something outstanding, a real gem with a huge contribution of intellectual capital.
I've read the book The Man Who Solved the Market by Gregory Zuckerman three times and I think it's only three, it will probably be like scientific literature, if you want to understand something well you have to read it 8-10 times. Minimum.
I plan to write more about this on my site in the near future, check it out: New City Trader
In an interesting niche is one of the most efficient funds - Medallion. Their system has only 51% of profitable entries (so claim the representatives, I have to admit I have a few different opinions on this). This discourages others quite effectively but Medallion alone earns about 7 billion a year with an equity of 10 billion.
Medallion's system covers dozens of markets and hundreds of instruments. Every day the automat inserts, according to different data, from 200 to 300 thousand positions. I will write it in words, so that there is no doubt: from two hundred to three hundred thousand positions a day. This high number is due to the fact that the machine adjusts the entry size to the current liquidity.
After the signal from the system, the machine splits the position into 200, 300, 500 smaller positions and enters it smoothly adjusting to the current available liquidity. The aim is to minimize costs and minimize the adverse move.
Analyzing the Medallion system and strategy is always a lot of fun, it is a fantastic challenge to try to understand what brilliant mathematicians have built.
In every aspect from signal identification to execution it is certainly something outstanding, a real gem with a huge contribution of intellectual capital.
I've read the book The Man Who Solved the Market by Gregory Zuckerman three times and I think it's only three, it will probably be like scientific literature, if you want to understand something well you have to read it 8-10 times. Minimum.
I plan to write more about this on my site in the near future, check it out: New City Trader
"It is better to become rich slowly than poor very quickly" - A.Unger