087: Tom Sosnoff – Speaks on Life Experiences, Trading Options, and Reaching Your Potential
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The Truth About Quantitative Models
There's never been a customer, institutional or retail that's created a quantitative model that can beat the markets. You cannot create a statistical chance of success that is greater than 5050 so it can't be done. There are different prop models, market making models, that's fine. High frequency models, we all know that. But there are no other models other than creating,. That's why hedge funds don't make money in cyclical markets. And the only time anybody makes money is if benchmarks go higher. Except the tasty trade way, which is creating a methodology and having people understand and learn that if you do things that are statistically strong, even though you don't have a theoretical edge
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