Registered: Jun 2005
04-24-12 05:49 PM
Quote from Rationalize:
This is middle office mumbo jumbo & buy side voodoo. Not trading strategy development.
Risk managers use these models to police the front office.
Risk to Trader: "You need to unwind that, because the model says your risk is too concentrated".
The middle office is another career path for failed traders.
Actually that is sort of what I meant -- not so much for trading (day or swing) but more for balancing risk in a long-term portfolio of assets. My neighbor does not describe himself to be a trader but is a principal in a small financial firm that specializes in asset allocation. My guess is that longer term, there is bound to be more signal as you can model things like interest rates, inflation, GDP, real estate prices, corporate profits, etc etc...