Thread by @Ankit_Quant

Weekend learning session with @alok_dharia and @VohiCapital. Muchas Gracias 🙏
Had an opportunity to discuss a wide range of topics from vol trading to global macro. Learnt handful of new things and got reinforced on some others.
A brief summary of our discussion: 1/n

https://twitter.com/alok_dharia/status/1381099730898325510

1. All of their and our systems are automated. It is not only important to get confidence on our edge via backtesting, but also opens up possibilities to explore more opportunities as current algos/models trade Live.

2. Volatility Trading has more to do with understanding the dynamics of volatility itself, rather than rampant/random volatility selling. While later may work in high vol environments such as 2020, to get long term performance, spend time on modeling/understanding vol features

3. Keeping things simple is underrated. @QCAlphaOne models/algos, much like @DecibelCapital models are built on exploiting underlying patterns/inefficiencies in markets. Complex does not mean better and neither provide a better return expectation.

4. Option trading is best gambling machine out there...😀
provided you know what you're doing.
- @alok_dharia

5. For Indian equity space, Momentum as a factor tends to capture Value and Growth stocks as well. Adding more factors to the mix may only increase complexity and may not provide substantial additional risk adjusted return.

Lastly, keep taking feedback on your approach. Being on right track is more important than being right as of now. Continued perseverance has potential to provide great rewards.
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