Quant Trading - A History

I have been a trader for over twenty years, and from the start of my hedge fund career working with Victor Niederhoffer I have taken a quantitative approach to researching and executing trading strategies. A quant trader is a trader that builds statistical models to test trading strategies rather than relying on intuition and experience. Today we will look at the history of Quantitative Trading from 4000 years ago up until the present day. We will discuss the contributions of people like Ed Thorp, Victor Niederhoffer, Mike Adam, David Harding, Martin Lueck, David Shaw and James Simons.

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[trynseed]

I noticed everyone applauding the knowledge that you bring to every video but are they all missing how hilarious you are. The dry humor is a big part of why I watch your stuff. Don’t ever stop.

[tianxia]

It is just incredible to me that concepts of Trend Following and Mean Reversion are so ancient.

[mr.marketoriginal]

You spill your wisdom on us, dear Patrick!

[bestfriendhank]

As much as I want for you to make more videos, I’m glad you don’t destroy your channel with a constant barrage of new ones.

[bobbyboljaar]

Patrick really showing us he is a man of culture by showing he reads Feynman on the side.

[stockmics]

Been on youtube for over 10 years, this is probably my first comment ever.

Gotta thank you for every single video you upload, very informative and the humor inbetween makes me laugh everytime.
Keep up the amazing work !

[whatapp]

No 1:Don't only hope on government for income, No 2: As an individual look for different self income not only waiting on monthly wages No 3: Always save the little you can and think of what to do with it when it becomes good for capital It's 100% Good to have different way to gain income government has failed us so let's try to survive

[timvincent]

So true. Creativity is the key to find good trading ideas. I heard about one student who managed to "borrow" a Bloomberg Terminal in a library and started to analyse the movements of all oil-ships that was moving from one place to another. He managed to see a pattern of the movements with the Crude Oil-price and started to trade his own savings with CFD's on Crude Oil. He sat in this library day in and day out as soon as the computer was available. He became a millionaire after a few months and got himself his own Bloomberg Terminal later on. Pure creativity there!

[johnhoude]

I counted the number of words spoken in 15 minutes on CNBC. The more words spoken the likelier we were at a top and vise versa. I also set up a decibel meter. The louder the show the more likely a top was in place. I also converted candle stick charts into musical notes and had a concert pianist "Play the Dow Jones" . Very effective for finding tops and bottoms. That's what creative thinking s all about.

[secret-thailand]

I'm having a proper binge since finding Patrick. Great videos!

[awk]

Your explanation on quant trading and why it appealed to you at the beginning of the video really resonated with me. You have very strong articulation skills; I appreciate the video.

[cortempestas]

"Of course today we have the counterexample of George Soros, who wanted to become a philosopher but instead become rich. Sometimes things don't work out for you" this is the type of failure that I want in my life"

[MarkusLaumann]

I would watch a movie called "Revenge of the Quants" all about their zany antics and attempts to get a peak at that juicy TA.

[kpcrisp]

That was top class. Could have listened to hours of those fascinating tidbits of financial history. The Japanese Rice "Futures" blew my mind.

[alandb]

Another great video. I started out as a commodities trader in my early 20's (20 years ago) and I now know that I was a quant trader. At the time though, I had zero experience of markets or trading and I wasn't aware of how anybody else did it. It just seemed entirely logical to look for correlations in data, so that's how I traded. I was astonished to find out as I later got to know traders in other companies that many didn't even use an excel spreadsheet, they just relied on gut instinct.

[vincentbiondo]

That ending, I liked and am buying your book tomorrow

[cegresearch]

Ser history of trading is needed more ; please more ser

[AlexVoxel]

The history of quant is very fascinating to me. Thank you for making this!

[vanessabirrueta]

Thank you for posting this. I’m an undergrad student majoring in CS/mathematics with a significant interest in the finance world, so this is the exact explanation and dive into quant traders I was looking for. Thank you

[mistersandy]

You're the only Channel I've found in finance that I feel is worth subbing to. I have a total of 4 subscriptions and two are family.