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Posts Tagged ‘D.E. Shaw

The most important in system trading. A billion dollar issue to some.

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On balance, hedge funds lost money in Y2011. As some restructured and some changed their modus operandi, one qoute I find particularly interesting as it highlights probably the most important single issue in system trading:

Managing Director [of D.E. Shaw] Anoop Prasad credited the gains to a toughened attitude toward the firm’s models. “We understand that alpha decays,” Prasad said. “We are unsentimental about eliminating models that have decayed or died”.

That’s it. Identify/use performing trading systems and phase out non-performing ones. The  article is here.

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Written by A.S.

January 1, 2012 at 10:42 am