Quantitative trading strategies - known to many as “black boxes” - have gained a reputation of being difficult to explain and even harder to understand. While there is a certain level of complexity to this approach, with the right guidance, you can successfully overcome potential obstacles and begin to excel in this arena.
That’s why expert fund manager Rishi Narang has created Inside the Black Box. In a straightforward, nontechnical style - supplemented by real-world examples and informative anecdotes - this reliable resource takes you on a detailed tour through the black box. It skillfully sheds light upon the work that “quants” do, lifting the veil of mystery around quantitative trading and allowing anyone interested in doing so to understand quants and their strategies.
Divided into three comprehensive parts, Inside the Black Box opens with an accessible introduction to the discipline of quantitative trading and quickly moves on to demonstrate that what many call a black box is in fact transparent, intuitively sensible, and readily understandable. Along the way, it also explains how quant strategies can fit into your portfolio and why they are so important.
Whether you’re an institutional investor or high-networth individual, the lessons learned here will help you gain an edge in today’s turbulent market. Some of the tough questions answered throughout these pages include:
Given both the difficulty of the market environment over the past few years and the negativity surrounding hedge funds in general and quant funds in particular, there has never been a better time to become more familiar with what quantitative trading is really about. With the help of the framework found here, you can gain a firm understanding of quant strategies, discern which are more likely to succeed, and ascertain how to use specific strategies in a portfolio, to help improve the performance of your investment process.
©2009 Rishi K Narang (P)2012 Audible, Inc.
This tour of the insides of a quant fund is well-structured, with an almost mathematical style. Terms are well defined. There is no fake razzle-dazzle, which I appreciate. It uses examples well, to show what the parts do (alpha, risk, transaction costs, and execution modules, and various tasks such as research and testing models), and how they have worked and failed in particular instances. It is not a book of specific "tips" or "strategies" to pursue going forward, for the manager or investor. It is introductory; obviously, there are further details and more specific tools and implementations one would need to learn to bolt together a state-of-the-art quant fund. After this, I could intelligently question a fund manager about most any aspects of the operations. The narrator's voice fits the material ideally. I will definitely listen through this one again.
In terms of building your own quantitative trading infrastructure and models this book ranks in my top 5. I have read it about 3 times now
A great read for the novice looking to learn more about the components needed to build a quantitative trading strategy / fully automated model
calm voice, not too rush, not too borng
no, too long to obsorb in one go
great choice for ones NOT working in the managed funds/ETF/mutual funds but wish to gain insight of them
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