Quote from gmst:
what was the guy's background - education, experience ? Did he use to work at an exotic desk in a bank before ? Your average hedgefund trader or even an average CTA trader can't arb exotics.
He didn't arb anything. I arbed Oanda for six-figures in 2008, and that was with $20k limits per SSN. I also closed Trinitas Capital's retail operation via arbs in SP500 component exotics. So it can be done.
He was making outright bets on knockouts. No arb. No hedge. Obviously as he became larger the scale required laying off the risk, but that didn't occur until he was already into 8-figures.
MBA from INSEAD. Worked for GS in London under the head of prop/structured products (guy with hyphenated name, can't recall).