Interesting Quotes From RenTec’s Jim Simons
“Speculation comes in and destroys trends. I am a speculator. It accelerates the trend. It gets you closer to the truth faster.”
“We decided that systematic trading was best. Fundamental trading gave me ulcers.”
“It took us six years to learn how to trade stocks.”
“Trend-following is not such a good model. It’s simply eroded.”
“Statistic predictor signals erode over the next several years; it can be five years or 10 years. You have to keep coming up with new things because the market is against us. If you don’t keep getting better, you’re going to do worse. Our models change every week.”
“Past performance is to some degree indicative of what it’s going to be in the future. Past performance is certainly not a guarantee, but somewhat, it’s likely correlated.”
“It’s 100% automated. It’s as automated as it can be. The computer does its thing. It generates its trade, and the trade gets executed. No one sticks its head to the door, and says: ‘Jeez! You should buy IBM!’ We couldn’t model that.”
