/sci/ - Science & Math

>>12601689
You can't predict the market at all except for some extreme examples. It's a harsh reality.
Modern investing boils down to investing in such a way to minimize your losses when they do occur and by manipulating everyone else to act a certain way.
Unless you have some good connections these books won't help you much getting rich except for maybe not being stupid with money.

>>12601689
90% of charts posted here are memes
the other 10% are for fields you don't care about

>>12601689
Sounds good, just don't expect to get rich. I don't remember if it's in Karatzas & Shreve or in Kane, Marcus & Brodie, but one of the books pretty much starts off explaining why you can't get free money by just looking at price history and the like.

>>12601765
would you elaborate? any further recommendations?

>>12601739
Shut the fuck nigger, I did a 4k to 60k in a year by scalping penny stocks over 500 times, 400+ of which I exited in the green. I cashed out 2019 December, and after J Pow started printing money put it all back (because I am not a complete fucking faggot who fails tor realise that zero interest rates and money printing means bull market - exactly like every investor on the planet said) into a mix of emerging market and world ETFs + 20% in ROKU and CRNC. I am now at 105k and set for life in my shithole country.

>>12601689

openstax.org

>>12602075
any book recommendations?

>>12601689
Depends on your goal. Econometrics is the study of predicting/modeling the current stock market, while things like these books are more "pure math, assume perfect market/spherical cows on frictionless surface" for studying finance from a pure math perspective, but wont necessarily give you any deep insight into predicting the stock market (I've gone through about 3/4 of Methods of Mathematical Finance, the first half is calc 1-3 + some linear algrebra, only using markets as your examples)

Methods of Mathematical Finance is the de-facto textbook for finance taught in most programs, so if you are comfortable with calculus, it could be good if you want the "pure math"
If you are trying to make money- these wont help.
The best bet for a real breakthrough in stock market predictions are, imo, learning ML with something like a RNN, and figure out if you can, say, scrape different sources of information (twitter, reddit) and use NLP to see if you can predict mass-market moves from the "global perspective" of what people are talking about.
That requires a bit of thought and infrastructure, however.
Anything else just wont do it, and even this is probably not going to be a life-changing thing.

>>12602101
It doesn't go far enough. You need much more than knowing what the exponential function is to study probability and stochastic processes.

>>12602009
Think he's talking about the efficient-market hypothesis. Look it up. It's controversial. Jim Simons disagrees, for example.

>>12602127
Most helpful answer.
Thanks a lot, anon!

>>12602180
Oh, I didn't see the Calculus Vol. 3. It's still not enough if you really want to understand what you're doing tho, because you'll typically use Lebesgue integral to calculate cumulative distribution functions (and other things). But it's "transparent" so maybe you could learn probability with just calc 3.

>>12602075
>Pennystock investor thinks he's a genius for spending 3 years in a bull market
lol

>>12602236
>>12602075
My favorite is the
>look, I made just-above-burger-flipper wage one year in a bull market in a major city, I'm rolling it it now!
>heh, these suckers. All I have to do is take that entire 56k I made and sink it all into the stock market next year, and the next after that, and the next after that....everyone but me must be suckers and jealous of my success, its why they keeping telling me to stop

>>12601689
Imho, mathematical finance is a scam. The market is driven by 99% emotions. 80% is algorithmic trading anyway and just publishing the right tweets at the right time will cause markets to crash (remember the CNN tweet about the bomb threat to the white house?). Or freaking Tesla.
Check out some random number tests and run them on stock market data. You're better off with a good foundation in psychology of the masses.

>>12602485
While I do somewhat agree with you, as long as you keep yourself informed about the market's climate, maths do generally help make better decisions. Or at least that's what I'd like to believe

>>12601739
ahem

...

>Jim Simons

>>12602491
Well, about risk management or minimization I agree, math and statistics definitely help. But market climate is pure emotion imho. If people think the markets will crash soon, they will. If people think the economy will grow, stocks will skyrocket. At least from my experience. Purely anecdotal, I know, but I've been investing since I was 14 years old and friends generally agree judging from their experience.

>>12602421
To be fair if I could make minimum wage working for myself without having to interact with anyone I would do it in a second. I'm just saying there's no way he doesn't get wiped out in a crash, though I'm just an idiot who thought it would be a good idea to stay liquid instead of buying the fucking dip.

>>12602485
based

>>12602485
the markets are just a complete scam, central banks have printed trillions since 2008 specifically to prop up asset bubbles and prevent price discovery. one big seller and the whole stock market would come crashing down, but the central banks always step in because the entire world order collapses if they don't. the system is too big to fail, you see, goyim. there is no alternative

>>12602776
even more based

>>12602776
>one big seller and the whole stock market would come crashing down
Like bitcoin, but without the central bank stepping in.

>>12601689
I was a student of Shreve’s and have worked for a large investment bank for a decade.

These books are excellent preparation for a career in research mathematics at a university. They are a somewhat less good preparation for a career as a quant. In the latter role, you will work with a trader to price and hedge over the counter derivative securities. But the trader will ultimately own the market risk and the p&l. This is still a somewhat lucrative career path (300k etc...) but it won’t bake you trader rich.

If you want to be a trader or a portfolio manager, you’re better off trading a book and getting an intuition for markets. You don’t need to understand the law of one place or how to calibrate a volatility surface in order to understand how the Greeks interoperate and what risk is really being traded with a particular set of products.

>>12602953

This. Even if he is lying. He is right about the book being largely theoretical. It's a very childish imagination that knowing proofs about ito calculus will somehow make you rich lol

>>12602953
You sound like you know a lot about investment. I'm planning on going down the book path in the OP once I'm finished with some other books. I know I'm not going to get rich, but how do you suggest making a little extra money as a side gig in terms of investment? Is this guy >>12602075 full of shit? Is trying to make money soon even a worthwhile pursuit or should all my money go in long-term growth investments?

>>12603202
My own investment portfolio is pretty boring. And you really, really shouldn’t take investing advice from an anonymous message board.

The math in those books is beautiful, I think. But it won’t unlock the secrets of the universe. Pi is just a movie.

>>12602953
>They are a somewhat less good preparation for a career as a quant. In the latter role, you will work with a trader to price and hedge over the counter derivative securities. But the trader will ultimately own the market risk and the p&l. This is still a somewhat lucrative career path (300k etc...) but it won’t bake you trader rich.
Isn't this specific to being a sell-side quant? At systematic buy-side firms I don't think there is necessarily a distinction between being a quant and being a trader.

>>12603675
I dunno I've gotten some pretty good advice from 4chan before. I mean I've gotten some laughably bad advice that lead me to some very cringey memories that may haunt me for the rest of my life, but I've gotten lots of good, too.

>>12602127
>dude machine learning lmao
the answer /sci/ doesn't want but needs to hear

>>12602953
please tell us Shreve stories anon

>>12601689
Will doing these books land me a job at Jane Street, DE Shaw and the like?

>>12602127
Correct me if I'm wrong,l. Isn't the ML approach considered to be too slow for trading?

>>12603936
ur not thinking u can win trading against institutions on ur pleb pc r u anon?

>>12603960
No. I'm just thinking why Google or Facebook haven't entered three trading market with their powerful AIs. Surely they have the top researchers and resources for this

>>12603936
depends on your time horizon, but many funds have teams deploying these kinds of strategies (i.e. NLP on alternative data sources) so it certainly can be profitable.

What he's actually saying is though is dumb. Nobody should waste their time trying to systemically manage their own money. Get a desk at an actual fund.

>>12603928
No. Go to grad school first.

>>12603969
traders are scavengers
bankers are lions
its easy for lions to wipe out traders

mergers,acquisitions that are told under the table by CEOs and bankers at dinner parties will never be detected by Machine learning

>>12603991
retard lmao

>>12604000
u noe im right nigga

>>12603975
What if I'm already at grad school and studying a subject that's not as math heavy

>>12602544
>If people think the markets will crash soon, they will. If people think the economy will grow, stocks will skyrocket.
There must be some clear limit to how big a bubble can get. People can keep thinking the economy will grow but wishful thinking won't prevent a catastrophe, and that catastrophe will not necessarily materialize only if people think there will be a crash. People's fears can sometimes precipitate a crash, but oftentimes that fear is caused by the crash that has already happened and at most it can result in a positive feedback of sort, leading to a worse outcome than the crash itself would have warranted on its own.

>>12604026
What's the point of going to grad school if it's not math heavy? Are you a philosophy major?

>>12604060
I mean I'm studying Computing. It's not as heavy as the pure maths courses

>>12603969
>with their powerful AIs
you don't understand how machine learning works. it's not a sentient being sitting on a computer chip waiting for someone to wake it up. it's just a program of many matrix optimizations with feedback loops. same as you have to write a new program for every problem. Machine learning isn't not generalizable AT ALL. Facebook and Google would suck ass in the financial markets.

>>12603991
you don't know what you're talking about. machine learning models aren't even aware of the semantics of under the table deals, insider trading, but they're already capable of trading (or really any easily quantifiable task) at a superhuman level.

>>12604032
25% of all USD in existence was printed last year. let that cook your noodle for a bit.

i am really disappointed by the level of computer science education on /sci/.

>>12604091
Are you allowed to take pure maths courses? If so I'd strongly recommend trying to do at least one course in basic probability theory (e.g. Durrett) and then a more advanced topics course. Funds like to see that you know your maths well. If you can't do this, at least take some theory heavy courses in your department.

>>12604158
Thanks for the advice

>>12604155
>Facebook and Google would suck ass in the financial markets.
Like they sucked at protein folding? It seems you're the one who doesn't understand how machine learning works.

>i am really disappointed by the level of computer science education on /sci/.
lol, agree.

>markets go up 15%~ annually
>faggot lied about being up 4000%
>lol, lmao look at the faggot making minimum wage and bragging about it
>also you can't predict markets at all, Buffet is a schizo scammer, Cathie Wood is a fraud, etc.
Sometimes this board is really pathetic

>>12604155
>Facebook and Google would suck ass in the financial markets.
lmao

https://en.wikipedia.org/wiki/Jim_Simons_(mathematician)

It’s possible. The problem most people make is that they look at it too mathematically or too game theoretically. The reality is that each trade has an impact on the market and by definition the price is just a function of those trades and orders in the order book.

It’s not a “line” on a chart. It’s the orderbook. So you need to program a model that can predict the orderbook not the line on the chart.

Kelly criterion is pretty much the only math you need.

I beat the market with a 60% edge but that is not enough. If you take a 1:10 RR trade with 0.1% SL and 1% TP and fees are 0.1% you need a 75% edge just to break even.

It is ridiculously difficult to beat the market but it is definitely possible.

Most people lose with risk management coming out the gate (using anything other than Kelly is wrong). Those who do understand risk management don’t understand the problem and try to model their programs over a line/chart instead of the orderbook - that is to say you have to extrapolate from the candles what the order book actually looks like. Then those that can model the order book still have to define some explicit way in which the OB is going to behave using some game theoretical model.

On a macro scale beating the market is easy as fuck though. George Soros’ book explains pretty much all you need to know to beat the market on that scale. But you can only make 5 or so trades a year so vol in your equity curve is going to be very high.

>>12601689
I've been studying mathfin for a while now, and know many practitioners and professors.

What is missing in this thread is a KEY info.

Mathematical finance based on stochastic calculus and PDEs, i.e. the general theory of arbitrage in continuous time, is specifically designed to leave money making out of the equation by excluding any possibility of beating the market. The objective is fair valuation under the assumption that arbitrage is impossible. This math is hard and, for me, has a beautiful theory and looks good. Its use is in derivatives structuring, NOT in trading. It will NOT make you money.

If you want to make money, you have to master machine learning methods, statistics, applied probability and gambling math. You need BIG data and a tonne of computing power. You also need trading platforms which minimize trading costs (usually inaccessible to day traders unless you set up a fund or you're a professional).

>>12604561
Bro, stochastic control theory. Best example merton portfolio problem.
If you eatimate the fair price, you know beta when you can buy for cheap or sell it for more than it's worth.

>>12604607
>Bro, stochastic control theory. Best example merton portfolio problem.
Yes you're right, I left that out. But I seriously doubt you can use it to make money
>If you eatimate the fair price, you know beta when you can buy for cheap or sell it for more than it's worth
usually the model calibration is on observed prices, so mispricing is assumed to be negligible: there should be no trading to be made from stock prices that beats the riskless rate on average. Really the money here is making up derivatives and profiting from spreads between fair value and the price offered to the counterparty after the position is hedged

>>12604561
Yeah the chart is weird because it recommends at least 2 very good books (I haven't read methods of mathematical) while giving very poor justification. You don't use these books to "become a more intelligent investor", you use them to learn the maths necessary to get hired as a quant at a reputable firm.

>If you want to make money, you have to master machine learning methods, statistics, applied probability and gambling math. You need BIG data and a tonne of computing power. You also need trading platforms which minimize trading costs (usually inaccessible to day traders unless you set up a fund or you're a professional).
To be fair though, at this point still the majority of quants probably are probably not using big data and machine learning. Many funds have ML teams that are more about investor relations than alpha.

>>12601689
Do I really need to study all this to get into IBD?

>>12604764
>at this point still the majority of quants probably are probably not using big data and machine learning
I have the exact opposite info. All quants except theorists in the derivatives markets are using ML like crazy. I heard that ML outclassed all econometrics too, so econometrics is basically dead in quant funds.

>>12604406
>Sometimes this board is really pathetic
Yeah, your reading comprehension is the best evidence for that.

>>12604844
This is my impression too. They were the first to embrace ML. They'll also be the first to embrace quantum computing is my prediction.

I find finance so boring though, at least I love CS.

>>12604844
>>12604904

Sure that may be true. I've only been at one shop and the deal there was that the ML guys ran their own book and were quite successful, but the vast majority of capital was in strategies that themselves were not fundamentally reliant on ML and alternative data.

To nontrivially use ML in a trading strategy you need to be something of an expert in the field, since nothing in textbooks or in journals actually works in this setting. So if a quant is 'using ML like crazy,' they are probably either doing something completely trivial or else relying on tools created by someone at the fund specializing in ML.

In general it's good to maintain a healthy dose of skepticism regarding machine learning. Many finance people don't understand the difference between importing scikit-learn and the kind of ML research that I'm sure RenTec is doing internally. They just get a chub when they hear ML, which is why every fund now claims to use it.

>>12605452
plot twist: ren tech is just using skcikit-learn but with access to a shit ton of env data and processing power

>>12605452
Yes, all quants I interacted with never mentioned to me internal research in either statistical theory or ML theory, they either applied papers from academia or used pre-built libraries in stats or ML. However this does not necessarily equate with trivial shit. For example I know a shop where they abandoned econometrics completely and now live only off ML papers, Bayesian stats papers for theory and ML libraries and PyMC3 in Python for prediction or estimation and base decisions on that.

>>12604752
You can make money using stochastic control if you have extra info (maybe insider info on future dividends). My MSc thesis was showing that with MC simulations.

>>12604844
ML is non parametric statistics, and usually highly non linear estimators.
Econometeics is just absolutely retarded shit time series estimators, a retarded type os statistics. It makes sense that econometrics is proven inferior to many ML estimators.

>>12605452
..anon this is not the opinion of eng lim goh..
healthily skeptical about many things but it's an abstract tool with specific use cases. provide historical data recusion and backtesting and you should be able to create at least "something" with a positive statistical edge.
ML HFT on a large-scale, utilizing order flow purchasing information from e-toto/robinhood etc to feed two sigma is not a meme.

>>12605571
I don't mean skepticism regarding machine learning as a general approach to alpha research, just that it's become such a buzz word and signifier of the cutting edge that every fund has to claim to be using it. Boomer investment bankers are talking about using ML lmao.

>>12605546
If you have insider info on dividends you can do straightforward arbitrage on the stock, is this correct?

[math]\delta_t>E[\delta_t|S_0]e^{-rt}[/math]
[math]\pi_t=(S_t+\delta_t)-S_0 e^{rt}[/math]
[math]E[S_t|S_0]e^{-rt}=S_0-\mu_\delta e^{-rt}[/math]
[math]E[S_t+\delta_t|S_0,\delta_t]e^{-rt}=S_0-\mu_\delta e^{-rt}+\delta_t[/math]
[math]E[\pi_t|S_0,\delta_t]e^{-rt}=\delta_t-\mu_\delta e^{-rt}>0[/math]
[math]\pi_0=E[\pi_t|S_0]e^{-rt}=0[/math]

i will be polite

>>12604271
the biggest key to success in ML engineering today is domain expertise. Deep Mind (which is technically a part of Alphabet, Google's holding company) succeeded in protein folding because they understood the problem space. they used a will defined competition and knew how to perform in it. we've seen over and over again in industry that you can't just throw data scientists at a problem and get sentience. so my point still stands that Google and Facebook would not do well as hedge funds, although they are certainly cutting edge when it comes to industrial speech recognition, computer vision

>>12604419
make a rebuttal at least. they're not hedge funds. but they are ruthless corporations. if they knew they would succeed in financial markets, why haven't they expanded in the space? Apple's expansion into finance was only in the retail credit space. Why didn't they start an investment bank of their own instead of partnering with Goldman Sachs? Show your work anon ...

>lol you can't predict markets anon don't even try
>entire foundational branch of mathematics dedicated to the prediction of random events and a trillion dollar hedge fund industry exist for this exact purpose
i am so sick of academic poorfags trying to drag down the rest of the world into their sad dark hole. just because you decided to cuck yourself for your advisor for the next decade in exchange for scraps of bread and porridge and the slim chance to suck enough dick to get in a third rate journal that no one reads doesn't mean you have to drag the rest of us in.

>>12605697
That looks like an oversimplification.

>>12604526
Can you cite a book for the Kelly criterion and (((George Soros)))' methods?

>>12601739
I've just been trying to slightly beat the S&P500 and succeeding at it. If I have a really good year once I can probably have a long term average way above the markets.
I don't know about other strategies, I assume they exist though.

>>12605452
What kind of data do they use to train their models? Do you look at all the people who failed using ML to see if it really works? What happens when too many people rely on ML if it does statistically beat the market?
(I'm don't know much about this stuff I'm just curious).

>>12606370
well for one example, there are millions of amateurs on brokerages like robinhood and ameritrade, and those brokerages make money by selling the orders that the retail traders make to the highest bidder. so when you're using robinhood and buying a stock, your order is sold to some hedge fund before it is executed so that they can front run it and make a quick buck off the fact that you don't own a supercomputer 10 meters away from the NYSE mainframe.

a big advantage many hedge funds supposedly have is in seemingly tangential information about the market like weather patterns, the number of cars in certain stores parking lots, the number of reviews on certain item on amazon. i took an interview (and failed) for a hedge fund 5 years ago not to be a big bonus'd trader but to scrape amazon reviews and prices for them so they could get an edge.

you can make money off of any data it seems. to be really profitable you need a hypothesis no one else has. finance is interesting because it's like engineering the whole economy. there isn't really a hard boundary regarding what is and isn't relative to all financial markets.

>>12606370
Of course there is basic market data, and beyond that they’ll try anything really (I.e. credit card data, research reports,etc. ). Look up alternative data.

>>12606406
Huh, the internet really has made predicting the market reliably viable. You have all the information you'll ever need because everyone lives their lives on the internet now and it's easy to scrape. Investing has become extremely accessible too so you'll always have a huge supply of ignorance to profit off of.
Curious what's going to happen in the long run.

>>12606560
yes i'd agree, that the immense increase in available data introduces more opportunities and more volatility into markets and that allows more entrants

>>12602191
any idea what Jim Simons actually does?
It sounds like a big data intensive strategy, not HFT.
I've seen overlap with Warren Buffett at times which could just be coincidence.
I watch both of their 13F filings to get a sense of what they do.
I still couldn't tell you any specific strategy ren tech focuses on whereas buffett is pretty good at spotting undervalued stocks, real good actually.

>>12606774
highly recommend this book. long story short its a combination of cutting edge information theory (simons worked for the defense intelligence agency, won their highest award) machine learning, distributed systems, statistics, probability, and advanced math for many many years. it's really incredible the cast of characters that simons managed to recruit. that was the real key to his success. simons used his experience in recruiting a world class math department at stony brook to guide his decision making in recruiting at rentech.

some of rentech's biggest wins were in advancing the state of the art in HFT infrastructure. they were blowing DE Shaw out of the water despite being located many more miles in long island away from the NYSE. their ability to integrate many different strategies into a single buy/sell decision was revolutionary.

simons also didn't cave to political correctness. RenTech's 2nd in command was the single biggest donor to Donald Trump's 2016 presidential compaign, and was in trump tower on election night in 2016. he would regularly debate the general iq of black people and the utility of nazism and harp the 2nd amendment in rentech's lunchroom. rentech employees would come to simons saying they would quit he didn't fire him (his name is mercer i believe, a great mathematician) but simons said mercer's political opinions were irrelevant to to company's mission.

typing all this makes me remember how great that book was. highly recommend it if you are interested in mathematical finance.

one important point is that simons wasn't rich until his late 40s, even though he'd been trading since his PhD at berkely. it took decades and decades of work to become a millionnaire then billionnaire

what are some practical books on how to use science to get rich?

>>12606838
thanks, that's interesting.

>>12606838
It's a quick read to be sure but I couldn't help but wish it was more technical and less par-for-the-course airport business book

>>12606198
Most rational post. Let people learn what they want to learn and how to apply it. Hundred years ago, some mathematicians were laughed at for studying prime numbers and finding the biggest prime, but now prime numbers are being used in cryptography and warfare.

Cringing at people who always said...
>Kek he thought his differential eqn and probability/stats will help him make money

how do i get into this as an engineer?

How can I work in one of these if I am in a third world shithole (Philippines)?

>>12606942
None, just do real estate

The Economics of Money & Banking

The last three or four decades have seen a remarkable evolution in the institutions that comprise the modern monetary system. The financial crisis of 2007-2009 is a wakeup call that we need a similar evolution in the analytical apparatus and theories that we use to understand that system. Produced and sponsored by the Institute for New Economic Thinking, this course is an attempt to begin the process of new economic thinking by reviving and updating some forgotten traditions in monetary thought that have become newly relevant.

Three features of the new system are central.

Most important, the intertwining of previously separate capital markets and money markets has produced a system with new dynamics as well as new vulnerabilities. The financial crisis revealed those vulnerabilities for all to see. The result was two years of desperate innovation by central banking authorities as they tried first this, and then that, in an effort to stem the collapse.

Second, the global character of the crisis has revealed the global character of the system, which is something new in postwar history but not at all new from a longer time perspective. Central bank cooperation was key to stemming the collapse, and the details of that cooperation hint at the outlines of an emerging new international monetary order.

Third, absolutely central to the crisis was the operation of key derivative contracts, most importantly credit default swaps and foreign exchange swaps. Modern money cannot be understood separately from modern finance, nor can modern monetary theory be constructed separately from modern financial theory. That's the reason this course places dealers, in both capital markets and money markets, at the very center of the picture, as profit-seeking suppliers of market liquidity to the new system of market-based credit.
Perry G. Mehrling


https://www.ineteconomics.org/education/courses/the-economics-of-money-banking

https://www.youtube.com/playlist?list=PLmtuEaMvhDZbmfO7rtVLBGJ4Eu_iFBtSU">1: The Four Prices of Money

https://www.youtube.com/playlist?list=PLmtuEaMvhDZbVJfl0Se-1eQncA_2ZB4bs">2: The Natural Hierarchy of Money

https://www.youtube.com/playlist?list=PLmtuEaMvhDZZyyAkEniNUMTTnlJj6qiKW">3: Money and the State: Domestic

https://www.youtube.com/playlist?list=PLmtuEaMvhDZYfVv95KDQWd8-7UrJCJ9Pm">4: The Money View, Macro and Micro

"https://www.youtube.com/playlist?list=PLmtuEaMvhDZZh6zLsntFVt3UIgQ3VqvVv">5: The Central Bank as a Clearinghouse

https://www.youtube.com/playlist?list=PLmtuEaMvhDZapRsqgacn0gLLO-5zQkcwU">6: Federal Funds, Final Settlement

https://www.youtube.com/playlist?list=PLmtuEaMvhDZZJrTj6tyB41ollE3V9ICDZ">7: Repos, Postponing Settlement

https://www.youtube.com/playlist?list=PLmtuEaMvhDZZ0iHoJmCN30Qm0PgyiD4c9">8: Eurodollars, Parallel Settlement

https://www.youtube.com/playlist?list=PLmtuEaMvhDZYdsq2xV-XMH_BktZzORjM2">9: The World that Bagehot Knew

https://www.youtube.com/playlist?list=PLmtuEaMvhDZa6t0f1aooC1QzPJmupu1Lg">10: Dealers and Liquid Security Markets

https://www.youtube.com/playlist?list=PLmtuEaMvhDZYlJeLypSZ5px_JnVHgFmOq">11: Banks and the Market for Liquidity

https://www.youtube.com/playlist?list=PLmtuEaMvhDZaBnW0RhzOOk6FO91MdsSEc">12: Lender/Dealer of Last Resort

https://www.youtube.com/playlist?list=PLmtuEaMvhDZa7lHhyQgkwSIhFy9VRF3my">13: Chartalism, Metallism and Key Currencies

https://www.youtube.com/playlist?list=PLmtuEaMvhDZZT848wo0fKzpjMm0FcOTv2">14: Money and the State: International

https://www.youtube.com/playlist?list=PLmtuEaMvhDZZfzK2aL4YHCgJDHIvicnkZ">15: Banks and Global Liquidity

https://www.youtube.com/playlist?list=PLmtuEaMvhDZaxgF-8EmoGUox54zLH6PC6">16: Foreign Exchange

https://www.youtube.com/playlist?list=PLmtuEaMvhDZYoo6ou5q3LQBC34hqw1A_G">17: Direct and Indirect Finance

https://www.youtube.com/playlist?list=PLmtuEaMvhDZZk--VcZIQCbki7JiVt4-hF">18: Forwards and Futures

https://www.youtube.com/playlist?list=PLmtuEaMvhDZb_WqDkpWLvzOmROPXf8bzL">19: Interest Rate Swaps<

https://www.youtube.com/playlist?list=PLmtuEaMvhDZYv1g1Yp_AE5gFqJ7Ny80Hc">20: Credit Default Swaps

https://www.youtube.com/playlist?list=PLmtuEaMvhDZYl_kIW7KgBDCBNoUraW8zU">21: Central Banking for Shadow Banking

https://www.youtube.com/playlist?list=PLmtuEaMvhDZYAHtKBvxC7dL-eL8apCOGD">22: Touching the Elephant: Three Views


This document contains redacted course notes of the second part of the course Economics of Money and Banking by Professor Perry G. Mehrling of Columbia University in the United States that is available on Coursera.org. This course explains the basics behind money and banking that are essential in understanding the financial system. According to Professor Mehrling, the financial system is about balancing flexibility and discipline.

Professor Mehrling builds on his own background in the history of monetary economics and financial economics. He sees himself in the American tradition of monetary thought that is based on the tradition of British central banking thought. Each generation had to rethink the underlying issues for themselves in order to make sense of the conditions of their own time. The current challenge is to work out the implications of financial globalisation for money, banking and central banking.

https://www.naturalmoney.org/moneyandbanking-02.html

https://www.coursera.org/learn/money-banking

>>12608354
>>12608360
>>12608365
seems kind of unrelated to the discussion but thanks for posting anyway. i think i'll give the prof's book "the new lombard street" a go

>>12608326
We can't. Only the top 0.0001% of the third world will work with this

>>12608326
well you already have a computer
study this: https://www.stonybrook.edu/commcms/ams/graduate/qf/index.php (you can easily steal all of these textbooks)
then just macro trade stocks and crypto.

>>12608354
>>12608360
>>12608365
anon i am just starting the first lecture of this but i can tell already it is going to be immensely enjoyable, so thank you for sharing. what brought it to mind?

>>12608458
I don't think quant finance even exists here in this third-world cunt.

>>12608526
Thanks! That's a really interesting resource, seeing that Jim Simons used to be at Stony Brooks. Though what's the benefit of doing non-measure theoretic probability? I already know Real Analysis through self-studying from Stein and Rudin.

>>12601689
Am I right in my understanding of the field's purpose as, not the "solution" to the market in whatever time frame, but the study of technical means to game margins, knowing the nanosecond consequences of events like block/large orders? And how to gain the best tech advantage obviously.

>>12606838
>simons also didn't cave to political correctness.
>but simons said mercer's political opinions were irrelevant to to company's mission.
So you haven't reached that part where Simons made him step down due to backlash for supporting Trump's campaign?

>>12608326
Get out of the phillipines. I've got the same issue (South African)

>>12609618
>I've got the same issue (South African)
We don't want you here but you can't leave.
Well sir someone has to be the scapegoat, so no you have to stay.

>>12609556
forgot about that part. most of rentech mercer was 2nd in command so it really wasn't until everyone else said they would quit.

>>12609556
So non-white people can't join Rentech?

>>12611232
>forgot about that part. most of rentech mercer was 2nd in command so it really wasn't until everyone else said they would quit.
Yeah, it seemed less about some Simon's own political beliefs and much more about keeping his company together. I can respect that.

Is econophysics a scam?

>>12612516
no, but as is typical with advanced research positions it's mostly a combination of anglos, jews and chinese.

>>12612831
not really. i met this woman who's ex fiance was an econophysicist on wall st and started cheating on her when he got rich. strung her along

who /biz/ ?

>>12615680
/biz/ is just awful is a board of schemers trying to scheming each other, and low IQ general

>>12615754
Exactly why I didn't post this there

>>12609618
If only it were that easy. I need 3 years of industry experience to gtfo to Singapore or Australia, though I think HK is still the place for quants.

>>12604790
Lol no

Bump

>>12606838
what role do inductors play in mathematical finance?

>>12601689
The simplest way to learn math for finance is to study thermodynamics.

>>12602109
What's your math like?

You need to have a firm grasp on the standard undergraduate math sequence (Calc I-III, Linear Algebra, and Differential Equations) to tackle rigorous Probstat. Preferably, Real Analysis, too.
If you aren't mathematically mature, I suggest reading Damodaran's Investments book, a good Fixed Income Securities book (you'll have to ask someone else--I can't remember who wrote the one I used), and Hull's Derivatives book. Do this concurrently with your math studies.

Then you'll have a decent foundation to learn Quant shit.

>>12605531
They are(were) Haskellfags for their black magic modeling, Seeples on the back end.
t. know a dude