054: Rishi Narang – Components of a Black Box, Humans Versus Computers, and High Frequency Trading
Chat With Traders
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The Risks of Quant Trading
Model risk means that I've simplified the world and sometimes things I didn't account for will drive prices and caused me to lose money. Machines are good at mass mass production of a concept what they're not good at is nuance or nuance in investing. The human can identify that much more quickly and often prospectively and avoid it in the case of a quant strategy. model risk is perhaps a risk to anyone who's got a discipline investment strategy but more of a risk for quants than for even a disciplined human.
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