Hacker Newsnew | past | comments | ask | show | jobs | submitlogin

I came to know of this guy though Jim Simons.

He once "leaked" the idea that Jim Simon's trading success came from his use of ideas called "gauge theory" and "fibre bundles".

I forgot the exact timestamp, but you will have to watch the entire interview to find that segment — https://youtu.be/zVWlapujbfo



There is a theory connecting gauge theory and finance:

https://arxiv.org/abs/hep-th/9710148

https://www.amazon.com/Physics-Finance-Modelling-Non-Equilib...

I don't think it's a crackpot theory. The basic idea is that the gauge group is the group of rescalings of the units of money, and arbitrage appears as curvature in the gauge field, i.e. you end up with a net change when you parallel-transport money around a loop in the (discrete) space of assets and time.


Simons himself completely disspells this idea in his interview on Numberphile.


AFAIK, one of the early hires at RenTech was Leonard Baum, famous for the Baum–Welch Algorithm.

RenTech is quite secretive, but this supports the rumors that simple graphical models for time series were behind some of their trading strategies.


Two other data points for this are

Brown and Mercer (who became ideologically opposed co-CEOs)

https://old.reddit.com/r/algotrading/comments/k299vp/were_br...

"Speech recognition" in those days meant Markov too


It's a trivial statement since many equities are correlated on a multidimensional manifold of characteristics. Jim Simons was just early and now rentech is nothing special.


This reads like “Newton or Einstein were just early”. That’s the whole thing, being the first person to do it.


Whether something is implemented on Jan 1 or Jan 15 is irrelevant to the grand scheme of things


If you only live your lifetime from Jan 1 to Jan 15, it matters a great deal.


Rentec is still world renowned after pioneering the quant business 40+ years ago. I don't think the rested on their laurels with some easy thing that they just stumbled on early




Guidelines | FAQ | Lists | API | Security | Legal | Apply to YC | Contact

Search: