- Series: Wiley Finance (Book 501)
- Hardcover: 240 pages
- Publisher: Wiley; 1 edition (September 8, 2009)
- Language: English
- ISBN-10: 0470432063
- ISBN-13: 978-0470432068
- Product Dimensions: 6.4 x 0.9 x 9 inches
- Shipping Weight: 15.2 ounces
- Average Customer Review: 45 customer reviews
- Amazon Best Sellers Rank: #238,169 in Books (See Top 100 in Books)
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Inside the Black Box: The Simple Truth About Quantitative Trading (Wiley Finance) Hardcover – September 8, 2009
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?Excellent new book . . . demystif[ies] the world of quant investing, and does so in a way that should be intelligible to any thoughtful investor. . . admirably thorough . . . and highly readable throughout. The book has a logical structure, which gradually builds an ever more complete picture of what it is that quants do, how they do it, and what the issues really are that surround quant trading. Much more than a simple "beginner's guide" to quants, and it really gets interesting in the final third, where [the author] looks in some detail at the risks inherent in quant approaches and the criticisms of quant trading?and how to evaluate them. To find out more about how to evaluate quants, read this book.?
In "Inside the Black Box," Rishi Narang makes the impossible seem possible: he takes the vastly misunderstood role of the quantitative trading strategy and makes it understandable to those with only the most tenuous working knowledge of global capital markets. How he does so is a sleight of hand no more complicated than patient, consistently eloquent writing, and easy-to-understand, basic examples."
?Markets Media Online
"The book, Inside the Black Box: The Simple Truth About Quantitative Trading, by Rishi Narang, is hands down the best introductory book I've read on the topic. Narang does a brilliant job of explaining (in simple English), how and why quantitative trading works. If you are looking for a primer on Quantitative Trading I strongly endorse and recommend this book."
"In a new book on quantitative trading strategies, entitled "Inside the Black Box: The Simple Truth About Quantitative Trading," Rishi Narang, founding principal of Telesis Capital, seeks to explain with real-world examples and anecdotes what it is exactly that quants do?The book focuses on a few major questions that Narang says are important to understanding the quant world. These include: what is a quant, what are the secrets of successful quant trading, what caused the disasters in quant trading, what role did quants play in the credit crisis, and what is the future of quant trading?"
"You may be skeptical that Rishi Narang will be able to deliver on the ambitious promise of his book, Inside the Black Box: the Simple Truth about Quantitative Trading (published by John Wiley & Sons, 2009). But he does deliver. He tells you, in language that can be understood by most educated people, what a quantitative trading system is and what a quant does."
From the Inside Flap
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, Insider 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:
- How do quants capture alpha?
- What is the difference between theory-driven systems and data-mining strategies?
- How do quants model risk?
- What can be learned about investing in general from quantitative trading?
- And much more.
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.
Top customer reviews
The book is a timeless description of the "Black Box" which Rishi demonstrates is a "Clear Box". The book starts with a great description of why Quant trading is important and what it is. The meat of the book is a guided tour through the generic structure of a quant traders "Black Box" which will be invaluable reference for anyone trying to trade as a Quant or wishing to understand them better. Rishi shows how there are a few fundamentals governing the practice; the "goodness" is in the variations on the themes and application and skill of the practitioner.
He ends the book with sections important to investors: Risks; Criticisms, Evaluation and the Future. Similar to one of his speeches where he referred to the current regulators as "fascist" in their tendencies, the section addressing the criticisms is succinct and challenges the reader to realize there has been far too much ill-informed rumor, conjecture and innuendo in industry with Quants used as an easy target for many other issues in the market.
The conclusion: There is no secret sauce, just an ever evolving recipe. Rishi provides you with a great design for a kitchen with the guidance and techniques to refine your culinary skills.
I am currently a Computer Science/Statistics PhD student. My research is generally on statistical data analysis, with a dozen published paper on this topic. To gain some basic ideas of systematic trading and see how my knowledge/skills can be applied, I've read a couple of books on automatic/systematic trading (all are popular and high-rating ones from Amazon). By far, this book is the one gives me most insights about how my knowledge in statistical data analysis can be applied to the field of black-box trading.
In a word, this book gives very nice picture of automatic/systematic/black-box trading. It is general, not covering any technical details / specific trading strategies. But it should be good for graduate students in Engineering/Science to gain a clear idea about systematic trading and how their knowledge can be, generally, applied to the field.
This book will be highly relevant for anyone who is interested in quantitative trading all the way to those who are already in the field. It breaks down all the major strategies very effectively in both a big picture and detailed way.
This book breaks down the myth that quants use a meaningless compilation of difficult mathematical formulas to get a result. Rather, in quite a scientific way, Rishi explains how quants use mathematics to prove/disprove hypotheses through both a theory driven and empirical way.
If you are thinking of buying a book on quantitative trading, this is the book to buy.
-- a collection of topic sentences that allude to the various components and
aspects of various modules without explaining what they are.
It is not very useful either from a theoretical standpoint (i.e. academic
research) OR from a practical standpoint (useful for the professional trader).
I suspect that the author is not drawing on a deep fund of knowledge and experience.
I'm looking for a better book in this area.
Most recent customer reviews
but for students or professionals the book is too general to give any insight into what algorithmic trading is.