5 key quant trading risk metrics (explained by a quant developer)

Рет қаралды 23,916

Күн бұрын

In this video I go over five key quant trading risk metrics that any quant trader, quant developer, or quant researcher must understand. I provide a simple and intuitive explanation for each risk consideration without going deep and introducing mathematical formulas.
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Пікірлер: 83

@123Techit 3 жыл бұрын

Newbie conclusions: The topic should be 5 Key option risks Price - Distance Delta - Speed Gamma - Acceleration Theta = Time decay (inverse to Gamma) Vega = Volatility Rho = Delta but use interest rate p.s. this is a very informative video btw. (This is my opinions and might be wrong)

@engmahanhazrati Жыл бұрын

I love the format of the videos. no BS, just facts and educational content for every second. direct to point and clear without distraction. i learned from this videos more than what i researched about trading over past 5 years.

@purplep3466 3 жыл бұрын

I believe my value is increasing while watching this video

@financialconsultant9527 3 жыл бұрын

Thank you for watching my videos and for your feedback for more info and guidelines WhatsApp@+1__8__4__5__5__5__4__5__3__6__7**

@bumdass7761 3 жыл бұрын

Very high quality video and all for free, God I love the internet !

@financialconsultant9527 3 жыл бұрын

Thank you for watching my videos and for your feedback for more info and guidelines WhatsApp@+1__8__4__5__5__5__4__5__3__6__7**

@hughmungus1072 2 жыл бұрын

@@financialconsultant9527 LOL wtf don't be scamming on other's channel by impersonating them, have some shame 😂

@quickstartstudio8008 3 жыл бұрын

The quality of this video is A grade. I watched it twice and gave it a thumbs up because I can clearly see you know what you were talking about. Looking forward to the next video of this caliber.

@financialconsultant9527 3 жыл бұрын

Thank you for watching my videos and for your feedback for more info and guidelines WhatsApp@+1__8__4__5__5__5__4__5__3__6__7**

@chilly2171 2 жыл бұрын

It's literally just retail options greeks. Anyone at their mother basement trading options will know all of these at the back of their hand.

@StarsandStripesVenturesToken 2 жыл бұрын

You are by far the most transparent and honest youtube channel on the topic. I know in the coming years you will have millions of views. I've been all over the youtube scene for day trading and none are like yours. Yes i've found some good ones who teach legit strategies but still they make money off their course or masterclass. They will not be as open and honest as you which puts you at the top. I can't stress how much you've changed my view on trading for the better. Thanks. As far as i'm concerned, you are the real Jesus. The old jesus would be proud and you being the new one.... Pleasure to meet you!!

@drillHDpelaz 3 жыл бұрын

Im changing in a positive way by just watching these videos

@alijoyce2169 3 жыл бұрын

Coding Jesus, can you make a video about actually executing and displaying algorithmic trades. Because I feel like your videos explain everything well but lack on display. Thank you!

@financialconsultant9527 3 жыл бұрын

Thank you for watching my videos and for your feedback for more info and guidelines WhatsApp@+1__8__4__5__5__5__4__5__3__6__7**

@hqaivids 3 жыл бұрын

Fantastic video sir. Keep it up.

@financialconsultant9527 3 жыл бұрын

Thank you for watching my videos and for your feedback for more info and guidelines WhatsApp@+1__8__4__5__5__5__4__5__3__6__7**

@j.4880 3 жыл бұрын

🤘🏻 nice! I'd love to see more in depth about the greeks

@CodingJesus 3 жыл бұрын

You got it!

@ddfelder2 3 жыл бұрын

@@CodingJesus thank you! This was so helpful... looking forward to your in depth videos on this topic!

@denislavstoychev7240 11 ай бұрын

Great video. Can you give another example that is not based on Options trading but rather a different asset type?

@gurpreetkhera8266 3 жыл бұрын

Option greeks, One of the most important tools a quant has at his/her disposal !!

@maxtvtvtv8623 3 жыл бұрын

That was a very nice transition Jesus!

@financialconsultant9527 3 жыл бұрын

Thank you for watching my videos and for your feedback for more info and guidelines WhatsApp@+1__8__4__5__5__5__4__5__3__6__7**

@maxtvtvtv8623 3 жыл бұрын

@@financialconsultant9527 go away dude

@samuelagina1 3 жыл бұрын

Pastor your message is pure and true. Just want to ask please can you setup a course on quant trading (for beginners python devs, data analyst and c++ devs) I am saying this because I have searched but can't find any reputable full course on Quant trading basics to advance. I am willing to pay, because I believe if you can give us all these for free , then you would even give us better for a full course. Please what do you think?

@airbound1779 2 жыл бұрын

make a video on each of these greeks. thanks.

@fminc 2 жыл бұрын

(Edit, I forgot to mention, you lock in a profit, each time you balance delta, when buying vol.) And on a second read, my explanation is confusing, just get the book (anyone), it does a great job.

@vegahedge1933 3 жыл бұрын

Great Video. Long Vega like Straddles will be King in the upcoming uncertain and unstable economic conditions. Dont hedge it out;)

@riankashyap1996 3 жыл бұрын

Delta hedging is important to scalp profits which will pay off the theta decay.

@manishrao2707 3 жыл бұрын

Thanks for this video

@financialconsultant9527 3 жыл бұрын

Thank you for watching my videos and for your feedback for more info and guidelines WhatsApp@+1__8__4__5__5__5__4__5__3__6__7**

@quentinnnnn 2 жыл бұрын

thanks !

@tebogomohlala8594 3 жыл бұрын

Thank you

@seburath2188 2 жыл бұрын

Thank you Jesus!

@chilly2171 2 жыл бұрын

How is this quant specific? It's just retail options theory.

@jackkensik7002 2 жыл бұрын

good video

@romancianci7133 2 жыл бұрын

amazing

@paul-edou 3 жыл бұрын

Greeks are mostly used to price derivatives, not quite as a strategy risk metrics, could you dedicate a video to proper quant strategies / portfolio rr analysis (i.e. sharpe / calmar / profit factor / model drift)

@CodingJesus 3 жыл бұрын

Look up an option pricing model. Nowhere in an option pricing model are Greeks used an inputs to price a derivative. Greeks are a reflection of a strategy’s risks.

@paul-edou 3 жыл бұрын

@Coding Jesus greeks are partial derivatives of pricing models, each giving price sensitivity to a risk component. I don't disagree with "risk metric" per say, but you should specify that it's only applicable to derivatives and used as risk adjustment variables. Great content, keep up the good work 👏

@rubyridge3030 2 жыл бұрын

If I buy an Option that is allready in the money my theta is positive, tight?

@MrMann-dw5uh 2 жыл бұрын

Is this a correct analogy? Position:Velocity:Acceleration:: Stock Price:Delta:Gamma

@marcoinvesting5339 3 жыл бұрын

Please make videos for each of the risks

@financialconsultant9527 3 жыл бұрын

Thank you for watching my videos and for your feedback for more info and guidelines WhatsApp@+1__8__4__5__5__5__4__5__3__6__7**

@trainwreck1827 3 жыл бұрын

Hey Jesus, i would absolute love it if you could come on our discord and do a Q&A. Is that something you would consider? We have everything from crypto ninjas to forex and crytpo swing traders. We'd love to hear your thoughts on quant development in the crypto space.

@financialconsultant9527 3 жыл бұрын

Thank you for watching my videos and for your feedback for more info and guidelines WhatsApp@+1__8__4__5__5__5__4__5__3__6__7**

@sentralorigin 3 жыл бұрын

do you have any opinions on VaR models?

@financialconsultant9527 3 жыл бұрын

Thank you for watching my videos and for your feedback for more info and guidelines WhatsApp@+1__8__4__5__5__5__4__5__3__6__7**

@preetirani9108 3 жыл бұрын

do quants look or understanat company fundamental. what is the value of cqf? 2 questions

@financialconsultant9527 3 жыл бұрын

Thank you for watching my videos and for your feedback for more info and guidelines WhatsApp@+1__8__4__5__5__5__4__5__3__6__7**

@silentstorm718 2 жыл бұрын

Your English needs to massively improve first. Certificate in QF will be of little use if you can't speak proper English.

@dankkush5678 2 жыл бұрын

It weirds me out how the greeks are often mentioned yet the word partial derivative almost never comes up

@CouncilEstatePopMusic Жыл бұрын

Sigma’s value?

@CodingJesus 3 жыл бұрын

How many chartists had a heart attack watching this video?

@tillicollapse99 3 жыл бұрын

man: 1) what's the meaning of your code: 87wZCoEfvb6AXfJtwwv2EGVc3f6UafSZM39CZ2xRLU1dKvLYK3x6JGbP4bj8iatHdwU3BnSvPfyKPVjwDKBepufSRDT1Kub 2) I didn't understand from your video how to we make risk management from the greeks 3) There are some proven chartists that make money, I know the majority looses money, but that also happens in quantitative trading... financial markets, traded algorithmically or discretionarily, are just a poker game, even if there are good players, it does not mean a quantitative player is better and a chartist is a looser. Don't get me wrong, I'm not a chartist, I develop my strategies algorithmically, but don't be too tough in price action, there are good players using it...

@CodingJesus 3 жыл бұрын

1) If you know, you know. 2) ... 3) Chartists are losers because they fight against reality. Reality being an efficient market, chartists being a form of analysis that postulates that it can aid investors in generating outsized returns.

@tillicollapse99 3 жыл бұрын

@@CodingJesus 1) that's too bad for your audience like me not to say something about it 2) So you say risk management is just hedging? I don't know anything about it, actually. You just explain option greeks like a textbook, which is something good, by the way, but maybe you could explain in another video how to combine risk management and the use of greeks more profoundly maybe. 3) Not all algorithmic practitioners think (and they have tested it) the market is "always" efficient... they are well respected practitioners... don't let your ego write me back...

@bumdass7761 3 жыл бұрын

@@tillicollapse99 1) it's his monero address where you can donate directly to him. I guess, however, that you're not into crypto

@tillicollapse99 3 жыл бұрын

@@bumdass7761 I'm not into crypto at all, I do trading in other asset classes. Besides, your response means you welcome questions, isn't it? Little by little I was gaining trust on him but in this world of talented and not talented people, I prefer to admire humble talented people. Intelligence is uniformly distributed in the world, and to be more precise, Jesus Christ taught his disciples in a humble fashion... I think he should correct his ego for the sake of his channel. Once he get more subscribers, he will have problems with that...

@kodiakgriz2296 2 жыл бұрын

.............'...Najarian great book -follow smart money on deep dive into options trading-defs........

@victorweyulumwaetako 3 жыл бұрын

Where can I contact you brotherman

@financialconsultant9527 3 жыл бұрын

Thank you for watching my videos and for your feedback for more info and guidelines WhatsApp@+1__8__4__5__5__5__4__5__3__6__7**

@sebastienbiollo 3 жыл бұрын

Are those metrics used by every quant trader, or just by quant traders that execute options?

@financialconsultant9527 3 жыл бұрын

Thank you for watching my videos and for your feedback for more info and guidelines WhatsApp@+1__8__4__5__5__5__4__5__3__6__7**

@chancerobinson5112 3 жыл бұрын

Was that a nicely positioned logo of a sponsor? Good One!

@financialconsultant9527 3 жыл бұрын

Thank you for watching my videos and for your feedback for more info and guidelines WhatsApp@+1__8__4__5__5__5__4__5__3__6__7**

@user-wh3hr3oz6l 2 жыл бұрын

Baga

@ddfelder2 3 жыл бұрын

🤯 I have to watch this video a few more times. You are saving my portfolio ...& my @ss 🤣

@financialconsultant9527 3 жыл бұрын

Thank you for watching my videos and for your feedback for more info and guidelines WhatsApp@+1__8__4__5__5__5__4__5__3__6__7**

@upplsuckimcool16 2 жыл бұрын

Wouldn't the gamma decrease as the underlying asset increases? You seem to be saying the opposite happens.... You lost me. If I invest 50 cents into a stock worth 1$ and that dollar goes to 2$ I make 50 cents..... .5 delta right? If that 2$ moves to 3$ than I gain less than 50 cents on that dollar move making my gamma negative.... no? What am I missing here...... It would make sense if you said "it increases by 1%" and not "$1" Buit in that case nothing would change. I'm struggling to see the the real world application of what ur saying..... or how it even makes sense. Clearly I'm missing something.

@SerobZeromintis 2 жыл бұрын

I mean, this is ok information, but this guy has some weird fanbase lmao people calling him pastor

@michaelswain6125 3 жыл бұрын

God is immutable. And in the Bible he is censorship resistant. The universe is recorded on the blockchain of his infinite knowledge Ps. 56:8; 90:2; 136:19; Is 43:13.

@michaelswain6125 3 жыл бұрын

Maybe we should be more like monero Matthew 6:3-4

@financialconsultant9527 3 жыл бұрын

Thank you for watching my videos and for your feedback for more info and guidelines WhatsApp@+1__8__4__5__5__5__4__5__3__6__7**

@michaelswain6125 3 жыл бұрын

@@financialconsultant9527 thanks bro!!! Can I give you all my social security number, bank account, and credit card numbers??