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Probability and Markets [pdf]

janestreet.com

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Re: Probability and Markets [pdf]

#11

Post by mhh__ »

For a much better introduction to financial markets I highly recommend

http://www.jdawiseman.com/books/pricing-money/Pricing_Money_...

> The price is a review (even if only a few words) on your preferred social media, either tagged #PricingMoney or with the link jdawiseman.com/PricingMoney.html. There is no paywall, nor registration, nor even cookies, so this price cannot be enforced. Nonetheless, please be fair: please post a review or comment or acknowledgement, tagged or linked or both. Thank you.

Re: Probability and Markets [pdf]

#12

Post by dwater »

Utkarsh_Mood wrote: post #3

Honestly I expected it to go over far more advanced topics than these, most of these are covered in the last year of high school over here.

I teach post-grad stats classes in the US, with no real prerequisites besides a Bachelor's degree. Most but not all of my students have passed a college level stats class that covered these concepts, and maybe half of those did not retain a true understanding of these concepts by the time they got to my classroom. In my experience, math is the least like/most hated of the core subjects, and stats is one of the least liked/most feared math subjects.

Re: Probability and Markets [pdf]

#15

Post by clavalle »

spaceman_2020 wrote: post #13

What was the probability that one of JaneStreet’s alumni, Sam Bankman Fried, would use JaneStreet’s brand name to build up credibility and then pull off the biggest ponzi scheme in human history?

Slightly lower than one of MIT's alumni doing the same.

It's telling that Jane Street stayed away from the whole mess despite the connection.

Re: Probability and Markets [pdf]

#16

Post by spaceman_2020 »

clavalle wrote: post #15
spaceman_2020 wrote: post #13

What was the probability that one of JaneStreet’s alumni, Sam Bankman Fried, would use JaneStreet’s brand name to build up credibility and then pull off the biggest ponzi scheme in human history?

Slightly lower than one of MIT's alumni doing the same. It's telling that Jane Street stayed away from the whole mess despite the connection.

They were happy to trade crypto and provide market making facilities throughout the ordeal.

They only decided to “step back” now that regulators are bringing the hammer down

This wasn’t an innocent bystander firm. They were complicit, either directly or indirectly

Re: Probability and Markets [pdf]

#17

Post by dist-epoch »

spaceman_2020 wrote: post #13

What was the probability that one of JaneStreet’s alumni, Sam Bankman Fried, would use JaneStreet’s brand name to build up credibility and then pull off the biggest ponzi scheme in human history?

> use JaneStreet’s brand name to build up credibility

How is that different from bragging that you finished MIT, Harvard, Oxford, you worked at Google or that your startup is in YC.

Re: Probability and Markets [pdf]

#18

Post by Solvency »

dwater wrote: post #12
Utkarsh_Mood wrote: post #3

Honestly I expected it to go over far more advanced topics than these, most of these are covered in the last year of high school over here.

I teach post-grad stats classes in the US, with no real prerequisites besides a Bachelor's degree. Most but not all of my students have passed a college level stats class that covered these concepts, and maybe half of those did not retain a true understanding of these concepts by the time they got to my classroom. In my experience, math is the least like/most hated of the core subjects, and stats is one of the least…

What makes statistics seems so daunting to the average student over, say, discrete mathematics? I feel like statistics has so many immediately obvious real world use cases and useful analogies to help frame it (die rolls, etc).

Re: Probability and Markets [pdf]

#19

Post by Err_Eek »

antegamisou wrote: post #9

For the experts in the thread complaining about the simplicity of the excellent introductory text in the OP, here's an exciting reading for you: Statistical Consequences of Fat Tails: Real World Preasymptotics, Epistemology, and Applications by Nassim Nicholas Taleb https://www.amazon.com/Statistical-Consequences-Fat-Tails-Pr... Beware that it may be way more advanced than what you'd expect though.

Personally -- I couldn't get past the first 2 chapters of the book. The notations it introduces are pretty unfamiliar for a newcomer and it quickly becomes really hard to follow. I genuinely would like to hear from somebody who managed to go through the entire book above, and what their main takeaways were (from the chapters that follow the two introductory ones).

The non-technical introduction chapter is pretty easy to follow, and I would recommend reading it.

Re: Probability and Markets [pdf]

#20

Post by Utkarsh_Mood »

andsoitis wrote: post #8
Utkarsh_Mood wrote: post #3

Honestly I expected it to go over far more advanced topics than these, most of these are covered in the last year of high school over here.

> Honestly I expected it to go over far more advanced topics than these, most of these are covered in the last year of high school over here. Opening sentence: The goal of this document is to present an introduction to probability and markets in what we hope is a fairly intuitive and accessible way.

right no I guess thats not what I meant to say, rather that I expected any learning material from Jane Street(which has some really rigorous interviews) to give a better heads-up to the type of thinking thats required to do well in those interviews.
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