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Episode #57: Marsten Parker- "Unknown Market Wizard" on Systematic Trading

Confessions Of A Market Maker

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How to Stop Running Strategies That Are Losing Money

The industry changed from a commission based model to an asset allocation model and an assets under management model. The more assets they gather, the higher the fees, right? That's how they're making their money. So if you don't ever sell anything, how is there any supply to force the price down so you can short? Sounds like a dangerous game to me. I mean, it's like a Ponzi scheme eventually. Or look at the daily volume of Apple compared to its float. Less than 1% of the float of that stock trades. If one of those funds came out of 300 million shares of Apple, the stock would be $2. Right.

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