If you can predict my investment decisions, can you predict my way home too?

QuoteOriginally posted by: barnyQuoteOriginally posted by: traderjoe1976QuoteOriginally posted by: barnyDon't confuse scientific with mathematical. Finance has become more mathematical, and less scientific.Fascinating insight from a Mathematician / Physicist who has never really studied Finance in-depth and has never published anything in any decent Finance journal.I've studied enough finance to know that some of it is unscientific. In fact, you don't have to go very deep at all to find serious problems. The more relevant thing to have studied to be qualified to talk about this stuff is philosophy, in particular philsophy of science, of which I've studied plenty.This sounds similar to the Math PhDs who claim that they have PhD in Finance, PhD in Economics, J.D., and M.D.All I am saying is that you would have much more credibility in criticizing Finance research if you had published three articles in JF as opposed to not having ever read any articles in the top Finance journals.

Are you suggesting that university finance professors know something about finance?

QuoteOriginally posted by: GamalAre you suggesting that university finance professors know something about finance?The answer to this questions would depend almost entirely on your definition of finance. If you mean the minutia of the latest twists in derivatives accounting in the presence of non-trivial counterparty risk, funding costs, collateral options and cross-currency basis spreads, the answer is "no" for the vast majority of them. But on almost any kind of slightly broader and more strategic financial question I would seek the advice of a Darrell Duffie, Steve Ross or Hayne Leland over just about any finance industry type. The same does not hold for any random triplet of finance professors, though...

QuoteOriginally posted by: GamalAre you suggesting that university finance professors know something about finance?The irony of the situation is that the more you know about a field, the greater will be your self-realization about just how little you know about the field.Therefore, someone who has spent six years in a Finance PhD program and has analyzed in-depth hundreds of Finance journal articles and has published a few articles in the top Finance journals would be more familiar about Finance research than any random person who has studied Philosophy of Science.

The only way to learn engineering is doing engineering. The only way to learn finance is doing finance. Doing teaching and research you learn a lot about teaching and research, nothing more.

QuoteOriginally posted by: GamalThe only way to learn engineering is doing engineering. The only way to learn finance is doing finance. Doing teaching and research you learn a lot about teaching and research, nothing more.This is indeed true. This explains why construction workers have got the maximum amount of self-confidence in their knowledge about architecture.

QuoteOriginally posted by: traderjoe1976QuoteOriginally posted by: GamalThe only way to learn engineering is doing engineering. The only way to learn finance is doing finance. Doing teaching and research you learn a lot about teaching and research, nothing more.This is indeed true. This explains why construction workers have got the maximum amount of self-confidence in their knowledge about architecture.Or confidence in their bosses. Who are usually engineers and rarely university professors.

Right. I used to think the same way as you do. But now I think it is way more complicated than I thought.

My two cents: if they make tons of money by a strategy, why would they spend several weeks or more time to edit and publish a paper? why would they tell you their strategy?QuoteOriginally posted by: AnalyticalVegaQuoteOriginally posted by: GamalQuoteOriginally posted by: AnalyticalVegaThat list doesn't even scratch the surface of what it takes to be very profitable consistently and long term.Pair trading, momentum trading, signal trading... There are tens of known strategies and much more confidential ones.Algo trading is a mixture of science and magic.Every book and paper I have read on Algo trading has got it wrong. They throw around terms like 'momentum trading' without describing how to successfully implement it. The models they describe are too static and quickly fail. Even machine learning can fail if you don't start with the right premise and understanding of the market.

"How can people find this sort of work fulfilling, either intellectually or morally? "Always good for a quick laugh when people involved in finance talk about the morality of their endeavors. lol!

QuoteOriginally posted by: septfleurMy two cents: if they make tons of money by a strategy, why would they spend several weeks or more time to edit and publish a paper? why would they tell you their strategy?QuoteOriginally posted by: AnalyticalVegaQuoteOriginally posted by: GamalQuoteOriginally posted by: AnalyticalVegaThat list doesn't even scratch the surface of what it takes to be very profitable consistently and long term.Pair trading, momentum trading, signal trading... There are tens of known strategies and much more confidential ones.Algo trading is a mixture of science and magic.Every book and paper I have read on Algo trading has got it wrong. They throw around terms like 'momentum trading' without describing how to successfully implement it. The models they describe are too static and quickly fail. Even machine learning can fail if you don't start with the right premise and understanding of the market.Not looking for a whole strategy, just useful information. There are very few papers/books with useful information.

QuoteOriginally posted by: slacker"How can people find this sort of work fulfilling, either intellectually or morally? "Always good for a quick laugh when people involved in finance talk about the morality of their endeavors. lol!As I said before:If you want to live in poverty and do something that adds value to society, then get out of here, go work in a cancer lab.