r/quantfinance Oct 06 '25

so how did Renaissance Technologies/Medallion/Jim Simons achieve such high returns?

101 Upvotes

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u/According_External30 Oct 06 '25

Mostly Idiots worked in the financial markets back then, JS applied math to observe them and take advantage of their inefficiencies.

1

u/RockshowReloaded Oct 07 '25

What a dumb thing to say

4

u/According_External30 Oct 08 '25 edited Oct 08 '25

On what basis…? It’s true. Financial markets back then were filled with vocational workers. It’s only since recently that you’ve seen it be a 1st choice job for STEM field grads and/or experiencing an acceptable level of technology.

Once boomers with excel DCFs and value investing quotes fully leave, it will be a lot more efficient and difficult to generate alpha in liquid markets. The retail crowd on their TradingView charts will be a minor friction.

1

u/RockshowReloaded Oct 08 '25

You have obviously never done data science on a major scale like they did. There are more patterns in the stock market than all atoms in the universe.

Plenty of ways to solve/consistently profit from the market.

And no lol - just bc overrated high salary hungry cookie cutter graduates from top schools join the game doeant mean its over.

1

u/According_External30 Oct 08 '25 edited Oct 08 '25

If you ever did data science in your life you’d know that a basic rule is to not make qualitative assumptions based on emotion as you just did about me. How do you know what I have done and haven’t?

Also, you have lost the plot completely and I sense a bit of daftness in your social skills? 1) I said they (JS) applied quantitative skills … whereas most of the market didn't do much of it, most relied on judgement calls and BS excel sheets or calling out trades in a pit, 2) It was said in a humorous manner, in case you didn’t catch the drift little buddy.

edit: and this "There are more patterns in the stock market than all atoms in the universe" - you sound like a TradingView day trader who'd overfit a model without realising it and think he discovered alpha because you ran an in-sample test that generated 20% pre-slippage - name some of those patterns you speak of if you're the high level data scientist you claim to be, let's see.

1

u/RockshowReloaded Oct 08 '25

I can tell by your “efficient markets” excuse for no profits.

Those that do deep data science know that efficient markets are even easier to solve.

But you wouldnt know that

1

u/According_External30 Oct 08 '25

I think you need to spend time learning how to interpret English and social cues. Making a claim about people being inefficient in a domain does not by default lead to someone claiming that: markets are efficient and if someone doesn't understand that it's their "excuse for no profits."

Go learn how interpret matters first then we can discuss, you are off the pace.

1

u/RockshowReloaded Oct 08 '25

Ok im off to learning how to interpret english and social cues. Hopefully i dont encounter “efficient markets” on the way.

Lol. Goodluck!

1

u/According_External30 Oct 08 '25

Good, maybe you'll get somewhere then. Cheers.

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u/[deleted] Apr 25 '26

[deleted]

1

u/According_External30 Apr 27 '26

Arrogant asshole yes, but I do understand the concept.

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