God of Money

An officetel near Euljiro.

Luckily, a shiny house was located not far from the house. I doubted that it wasn't the apartment, but as soon as I walked into the house, I could find out why.

“Are you the gecko daddy? ”

“Huff. My only son is being bullied." What can I do? We have to get him out. ”

“· · · Ah. ”

“You don't have to look so pathetic. I'm doing just fine. ”

As Shin Ki-hwan said, the officetel was clean. Basically, there was not much furniture and the floor was well organized without any mess. There was no dishes in the sink. I turned around and looked at the bookshelf for no reason.

“Did you see all those books? ”

“What would I do if I was home alone? I'm going to read a book.”

Yoon Gihwan approached the bookshelf and took out a few books. "Linux management and utilization," "object-oriented programming," "clean code," and "Oracle database practices and utilization."

“Working for the company. ”

“Then why don't you quit your job? You have to study all the time or you won't be able to do this. ”

It was so natural that he waved his head.

“Now, let's move on to the story. Let's go deeper. ”

“Very well, let's get started. ”

A shiny ring from his horse drags the whiteboard out of the room. Then he picked up the board marker and wrote down the main formula.

Call option equation c SN (d1) X erT N (d2).

The foot option equation pXerTN (d2) SN (d1).

The black shawls equation with the gloss on the blackboard.

I had never seen a mathematical formula before in college written on the whiteboard.

“This is the Blackshawls equation, which has been known to create an option market. Myron Shawls, who made this, won the Nobel Prize for Economics in 1997. This is the algorithm. ”

He also remembered seeing it in a book.

“But the model didn't work on Black Monday, October 19, 1987. ”

“Oh, you've studied. That's right, the probability of Dow Jones dropping 7% was close to 0%, so it wasn't considered. Black's system was paralyzed, and the market fell by 25 percent from a panicked peddler. I went out of my way. ”

“I could measure celestial movements, but I could not measure human frenzy. I remember a quote from Isaac Newton that Black left behind. ”

Shin Kihwan admired me purely.

“Hey, this feels good to teach you. ”

“A case of pure physicists, who were not recruited into the study of theoretical physics by the recession of the economy, turning their eyes towards finance. ”

“Yes, you will eventually become financially talented. This equation is still being used not only in options, but also in the stock market."

The one who answered wrote another name on the blackboard.

David Shaw.

Jeff Bezos.

Jeff Bezos is the CEO of the Amazon. Although David Shaw was a little-known figure to the public, he had a clear memory in the history of algorithmic trading he studied.

“He's the founder of Hedge Fund D.E. Shaw. Jeff Bezos was one of David Shaw's favorites. even though he quit his job at Qwant and started the Amazon and had even more success. ”

This time, Shin Gihwan said admirably.

“I knew it! A rookie never lets me down. Add to that, David Shaw was a brilliant computer engineer. In the Wall Street, the world was dominated by countless traders majoring in economics, mathematics and statistics. No one listened to a computer engineer."

"We proposed a way to calculate algorithms simultaneously through high-speed parallel processing to get the result value. I'm assuming Morgan Stanley refused."

Shin Gihwan nods.

"You've studied history well. So one last question. Why would I name these three people? ”

“There are also different kinds of quants. People who purely make algorithms, who focus on computing power to make them work faster. David Shaw was the one who focused on using computing power to make algorithms run faster, and Fischer Black was the one who was good at making them more purely academic. ”

This was the difference between an architect and an implementer.

There are different people who design construction drawings, and there are different people who use them to build buildings quickly and economically. Of course, a person with abilities could do both at the same time.

Shiny circle now drops the vodka marker and asks.

“What type do you think you are? ”

“I · · · · · · · · · · ·. ”

The dominant closed his mouth. It is an issue that I have studied the history of algorithm trading and pondered countless times.

Choice and focus.

After all, there is only one time, so you need to choose and focus on a few things. No matter how much you think about it, you're not an alien who jumps over the edge. And I wanted to exercise for fitness management, and I wanted to enjoy using it when I made money. But all of that is after revenge. And in order to get revenge, you need time to endure the pain of cutting bones.

My mind was prepared enough.

“I'm going to do both. I'm going to build an algorithm and mount it on a system that I created. ”

Suddenly, the fierce venom was in the eyes of the dominant. Even the glitter I was looking at was incredibly thick and hideous.

Living like a murderer.

I couldn't stop it or explain how hard it was.

“Well, I see. ”

He asked me to make me choose between the two. However, Yoon Gihwan only nodded his head in response to the dominant's answer.

“I also wanted to study statistics and mathematics constantly. So all you need to do is tell us about your hands-on experience. ”

Statistics and mathematics are the basis for making algorithms.

It was already part of the dominant plan.

“Oh, I see. ”

Yoon Ki Hwan had to nod again.

* * *

She continued to explain her work without asking any more questions.

“It was a very simple system at first. When Golden Cross was created, he bought stock, and when Deadcross was born, he sold stock. ”

Golden Cross.

When the short-term moving average line is in the middle, the long-term moving average line is pushed up from below.

At this time, the moving average line is plotted as a plot, for example, by plotting the average stock price up to the past 5 days. At this time, the graph up to 20 days is called the short term, more than 120 days long term moving average line.

Dead cross, conversely, refers to the short term moving average falling below the long term moving average line.

Simply put, Golden Cross meant a transition to the strong and Dead Cross to the weak. The dominant voice simply said.

"It was really simple."

"But this was a better rate of return than people do. It's impossible for a layman to make that kind of mechanical deal."

I agree. I have seen numerous examples of this being the head of the server team at the cryptocurrency exchange.

"You assumed more complicated situations next time."

"Yes, in the candlestick chart, add the rules according to the beeswax or the beeswax, and branch out what will happen to the volume of the deal."

"You've used the typical trend strategy."

"There was only one person who could analyze it on a technical basis. And as we burned through the quarter, there was another problem."

"Spaghetti code."

Spaghetti code.

It is a phenomenon in which code is mixed up and difficult for people to recognize. Think of it as someone drawing a blue line on the red line, and then again drawing a black line and a yellow line.

"Yes, and I was dying to add another set of auxiliary markers like the MACD and Stochastics. It took me over a month to refactor those codes."

"And everyone could not have just lost more money with the indicators that they saw."

Shin Gihwan nodded and wrote another word on the blackboard.

"So I began to put my hands on the relevant papers. to implement algorithms that are quite well known in the industry but unknown to the general public."

Yoon Gihwan paused for a moment and saw his dominance. It was full of jokes to ask me to guess. A worried dominant opened his mouth.

"Fair Trading Strategies commonly used on Wall Street?"

Yoon Ki-hwan had to admit it once again.

"I didn't have much time, but I worked really hard."

"It's easier than dying."

The sheen glows in my voice, shivering. However, I quickly regained my composure and continued to explain.

“Yes, I applied the Fair Trading Strategy. ”