Guest notorious546 Posted January 25, 2017 Share Posted January 25, 2017 anyone hear this podcast yet? thoughts on thorp or his new book? http://www.npr.org/sections/money/2017/01/20/510810752/episode-749-professor-blackjack “GOLDSTEIN: The formula worked. He figured out a way he could trade both call options and the underlying stock so that he'd be protected if the price of the stock went down, and he started making money consistently. A few years later, by the way, a couple of economists came up with this same formula. And they published it, and their work went on to win the Nobel Prize. Anyway, Thorp starts managing money for some of his friends and colleagues, goes on to start an investment firm - the first one that is really driven by math and technology. And the firm has this incredible run of using quantitative techniques to find just one edge after another. For something like 20 years, it is one of the most successful investment firms in the country. THORP: In, I think, 230 months, we had three down months. All the others were up, and three down months were all less than 1 percent. GOLDSTEIN: So like that's... THORP: We had... GOLDSTEIN: I feel like that's not supposed to happen. Nobody makes a profit every month for 20 years.“ Link to comment Share on other sites More sharing options...
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