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Interesting article discussing quant strategies and regular hedge fund strategies, and how they handled the august melt down.
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Great article of how computer based funds or programs...dont/cant react to the pyschology of the market and eventually they must adapt ,change or can go BUSTO without the eventual intervention of a QUALIFIED market person/leader.They write these quants with such EXTREME risk without many of their investors(or THEM even knowing it)using pure math/theory as a nucleus......Most of these funds developed by these "propeller heads" are running wild where MOST of them dont have a [censored] clue what to do,when an event such as this happens.
The same thing happened in 1987 with the "original" program trading debacle ....arbing the S+P futures vs.the Cash equities side....exasberating the decline,before even those BRAIN surgeons figured it out
Unreal how naive some people are....including a majority of clueless rocket scientists from MIT on WS
LOL....I cant believe I actually finally saw the "propeller head" reference in an article [img]/images/graemlins/smile.gif[/img]
They come...and they usually GO [img]/images/graemlins/smirk.gif[/img]