Sep

16

Willie SuttonI mean, when you're playing against someone using mitigants to generate optimum MEQ to prevent your pinging him, why for crying out loud, what kind of chance do you have. One feels like Willie Sutton when Thompson hit the home run and turning oneself into police headquarters immediately or at least closing out all trades with one clearing house immediately. One has not seen such assured intellectual prowess since the quotes from the Harvard fund managers themselves in Edspec memorialized by Susan.

From "The Education of a Speculator" page 131:"One of the strategies Harvard favors is to buy undervalued securities and sell short comparable overvalued securities with the same industry."  "In discussing how such strategies reduce risk, Harvard Management Director Jay Light, a professor at the Business School, states that, if the market falls, "We will get hammered less than, no more than, and almost surely less than we would have been hammered had we just had [our portfolio] in domestic equities.""

Quote from Vince Fulco's 9/15/10 post: "Tusar: It's about the routing strategy, and the order placement strategy. The best techniques and the best mitigants to prevent what you just described from happening are pretty simple blocking and tackling kinds of things. In other words, ***randomize your order size and ***placement of orders, using 'Minimum Execution Quantity,' because I don't want people pinging me for odd lots and then finding out I'm there and stepping in front of my order, etc."


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