John Gu Profile picture
Founder and CEO @AlphaLab_Cap. Previously at Tower Research, Citadel, Alpha Simplex. Course 6 and 15 @MIT.
Dec 15, 2022 • 7 tweets • 2 min read
Early in my career as an HFT portfolio manager, I had a quant trader who, the first few months into his job, lost $20K in a few minutes through an implicit looping bug in his code. It's the same sort of bug that brought down Knight Capital Group.

👇 He was visibly shaken, probably thinking he'd get fired. Instead, I took him out for a drink, and calmed him. I told him that the cost of moving quickly is sometimes making mistakes, and that's OK.
Nov 15, 2022 • 20 tweets • 3 min read
Times like these highlight the importance of good risk management. This is where 3AC and Alameda both fell down. What were the warning signs?

A thread 👇 1. Both 3AC and Alameda called themselves market makers, but what does this actually mean?