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…
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…
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…
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…
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…
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…
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…
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) Again I've seen the…
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…
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…
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…
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…
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…
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,…
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…
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.
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…
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…
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…
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…
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…
Agree completely. This is one of the worst things you can do, even if the code isn't particularly confidential. It is such an easy case to win. Worse yet, you expose your new employer to enormous liability and can taint…
Non-competes are fine so long as: -You are in a role with high search/discovery costs but low replication costs: A quant developing predictive signals, a salesperson or attorney building a client base, a researcher…
Various reasons, see: https://en.wikipedia.org/wiki/Electricity_on_Shabbat and https://en.wikipedia.org/wiki/Activities_prohibited_on_Shabb... It's important to note that not every member of a religious group interprets…
Talmud scholarship in general is an important part of some Jewish people's culture. They have a rich history of debating rules/their interpretations and applying them to hypothetical or actual life situations. It's a…
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…
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…
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…
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…
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…
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…
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…
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) Again I've seen the…
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…
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…
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…
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…
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…
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,…
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…
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.
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…
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…
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…
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…
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…
Agree completely. This is one of the worst things you can do, even if the code isn't particularly confidential. It is such an easy case to win. Worse yet, you expose your new employer to enormous liability and can taint…
Non-competes are fine so long as: -You are in a role with high search/discovery costs but low replication costs: A quant developing predictive signals, a salesperson or attorney building a client base, a researcher…
Various reasons, see: https://en.wikipedia.org/wiki/Electricity_on_Shabbat and https://en.wikipedia.org/wiki/Activities_prohibited_on_Shabb... It's important to note that not every member of a religious group interprets…
Talmud scholarship in general is an important part of some Jewish people's culture. They have a rich history of debating rules/their interpretations and applying them to hypothetical or actual life situations. It's a…