The Rich List - James Simons $1.7 billion

The Rich List

Jim Simons :cold_sweat:


Well, being one of the best mathematicians and cracking code for the NSA prepares you quite well to being a code cracker in the financial markets ...

I quote:

And I hired a few mathematicians, and we started making some models -- just the kind of thing we did back at IDA [Institute for Defense Analyses]. You design an algorithm, you test it out on a computer. Does it work? Doesn't it work? And so on...

Sounds easy :wink:

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So that is where went all my money!!!!!:sob:


@NowToLook So it's high time to get them back and earn a little more!

Nothing easier than following Jim Simons' footsteps: Harvard, MIT, Princeton, NSA (National Security Agency) and there you go - you are ready to become billionaire hedge fund manager :wink:

I keep my fingers crossed :crossed_fingers:


In this ultra modern market ML seems to be a necessity. And I don't even know how to spell it. :smiley:

Algorithmic Trading – Impact of Automated Trading Programs On Markets Documentary

I wonder if traders in Renaissance Technologies use Amibroker. If not, what software do they use?


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@Lennon Well, Warren Buffett doesn't have a computer in his office and I quote: has managed to send just one email his entire life (to Jeff Raikes of Microsoft), so I can rephrase the statement from your post: What if I told you, that real traders don't use computers! :wink:

I bet it isn't MT4 :grin: ... We can ony guess, but I think they mainly use their own, custom made software...

I don't share this view. Of course ML is the future (no doubt about it), but I think, there is room for everyone. Warren Buffett is not trying to outsmart people like Jim Simons in the "quant arena", he just do what he does best in his own old-fashioned style!

Markets are far from being efficient. At least I don't buy efficient market theory - I can see it every day on my charts! If they were efficient, charts would look like plotted using StairCase style. But they don't! You can try spotting and taking advantage of those inefficiencies. And you don't have to be a rocket scientist to do that (no offence @rocketPower :wink: )

Many successful businesses started from identifying some niches on the market and not all of them are run by MIT professors - so don't give up :slight_smile:


Haha but there is some truth to that.

Simplicity is hard on the markets because they are so counter intuitive. I'm only becoming satisfied with my trading now and am still not where I want to be. Biases and consistent risk management are definitely areas of improvement. Math and clever coding will never solve your problem. Identifying you edge and sticking to it is the hardest.

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You see that is the very crux that creates the "Market Paradox".
Having that said, Milosz, your contributions are a source of inspiration for me. :smiley:

A psychiatrist would give pills to a person with bipolar disorder. On the contrary, "Trading Psychology" demands a trader to be an ever-spirited athlete who could accurately decipher this coherent "Market Auction". P&L of an individual entirely depends on the correct judgement of this market bias to a particular direction (market polarization).

This polarization is market inefficiency which portrays its deceptive nature, that could be either used as an advantageous gain if right or a frantic loss if wrong. At EOD, it all boils down to the Trader self and the mind irrespective of any system or method. It all comes down to how a Trader handled the self. Now can a human be a better trader? IMHO no! Had that been the case we wouldn't have had the staggering 85%-90% losers all the time. However, the reason is simple, its because our decision making process is layered with our emotional feelings which creates the varied spectrum of outcomes over a rather similar symmetric scenario to create an asymmetric world around us. Trading psychologists asking to put emotions away is a crap and a well-tailored sales pitch.

And very true....

In your free time, please watch this patiently :grin:. I am quite sure you will give yourself a laugh at the end of it.

P.S. I don't see any difference between a trader and an investor (minus promoter / entrepreneur).