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macrocephalopod's profile
macrocephalopod
macrocephalopod
macrocephalopod
@macrocephalopod

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macrocephalopod

@macrocephalopod

Paul Allen, Vice President M&A, Pierce & Pierce (Sie/Hir) | Vegan | Silence is Violence | Women’s Rights Are Human Rights | ACAB (Assigned Cephalopod At Birth)

Joined December 2020

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    1. macrocephalopod‏ @macrocephalopod 21 Mar 2021

      macrocephalopod Retweeted The Moron That Went Short Yet Again.

      This is a good question! Some possible answers - 1. Infrastructure that is too expensive or too hard to build yourself (eg colocation, low latency data feeds, compute clusters, fpgas) 2. Data that is too expensive or simply impossible to buy (eg historical tick data)https://twitter.com/mobile_mm/status/1373427747901542402 …

      macrocephalopod added,

      The Moron That Went Short Yet Again. @mobile_mm
      Replying to @nope_its_lily
      I have a different question - if you have a "quant" strategy or system that has a positive expectancy why would you trade it with other peoples money? Why give anyone else a cut? Eventually you will become very rich trading your own account. I dont get this.
      7 replies 12 retweets 128 likes
      Show this thread
    2. Agustin Lebron‏ @AgustinLebron3 21 Mar 2021
      Replying to @macrocephalopod

      That said, it's absolutely the right question for an investor to ask. "Why is this person offering *me* a piece of their money tree?" Most of the time, the answer is "They don't actually have one."

      2 replies 1 retweet 13 likes
    3. josh‏ @22jkm_ 21 Mar 2021
      Replying to @AgustinLebron3 @macrocephalopod

      It’s a fine question and one that needs to be asked. But an anodyne answer is that many (possibly most) good quant strategies are probably more valuable as part of a multi-strat fund and/or part of an institutional portfolio.

      2 replies 0 retweets 5 likes
    4. Agustin Lebron‏ @AgustinLebron3 21 Mar 2021
      Replying to @22jkm_ @macrocephalopod

      This is a great point. And I think the answer to the question I posed, in that case, would be "because this is a good home for your strat". It's the Millennium model, basically.

      1 reply 0 retweets 2 likes
    5. josh‏ @22jkm_ 21 Mar 2021
      Replying to @AgustinLebron3 @macrocephalopod

      Agree. And to be a little more explicit than (what I think) MCPD was getting at: assuming a finite shelf life for a strat, working within an institution gives the budget, infrastructure and (usually) a network/sounding board for building new strats.

      1 reply 0 retweets 1 like
    6. macrocephalopod‏ @macrocephalopod 21 Mar 2021
      Replying to @22jkm_ @AgustinLebron3

      Right. If you are reliably generating $10m top line pnl ($1-1.5m bottom line) you have the option to hire an analyst to keep churning new ideas, or a developer to automate so you can focus on research. Much harder if you are trading your own capital and doing everything.

      1 reply 0 retweets 2 likes
      macrocephalopod‏ @macrocephalopod 21 Mar 2021
      Replying to @macrocephalopod @22jkm_ @AgustinLebron3

      Plus within an institution you get access to a wider net for hiring, expertise in filtering candidates, and probably you just see higher quality people to begin with.

      10:03 AM - 21 Mar 2021
      • 3 Likes
      • Robot James 🤖🏖 josh Agustin Lebron
      1 reply 0 retweets 3 likes
        1. macrocephalopod‏ @macrocephalopod 21 Mar 2021
          Replying to @macrocephalopod @22jkm_ @AgustinLebron3

          If things go south and you have a down year, a solo trader who hired an analyst now has to fire them. Within an institution there are buffers (maybe you can cover their base of of next year’s pnl or they get reassigned to another team) so that the talent doesn’t just disappear.

          0 replies 0 retweets 3 likes
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