1. Mathematician is a super trader - Jim Simons


One of the most successful hedge fund managers is believed to be Jim Simons, whom colleagues and the press have nicknamed "the king of quantitative analysis" (Quant King).

In 1974, this mathematics professor and colleagues invested $ 600,000 in commodity futures. At the same time, the future sugar price has jumped, after 7 months, the above investors have reached 6 million USD.

In 1978, Simons founded the investment company Monemetrics, the forerunner of Renaissance. His idea was to use mathematical models in currency transactions. Within 10 years, mathematical models were developed, and in 1988 Simons and his colleague James Ackles founded a hedge fund called Medallion.

In the 1990s, Medallion achieved great success. In its 11 years of existence, with 148 people employed, the fund has produced an average annual return of 43.6%. According to Forbes, Simon's assets are now worth $ 14 billion.

2. The mathematician is the super trader - Ed Thorpe


The first person to claim that he could make millions on Wall Street with his math skills was Edward Thorp. Edward O. Thorp is seen as the father of quant investing before "quant" became a major tool on Wall Street.

His success began investing in his desire to beat the casino. In the 1950s, he built a wrist computer that would give him a 44% positive math advantage or expectation in the game of roulette. And in the game of poker (or poker, blackjack by name depending on the region), he built the first card counting system (still in use today).

In the late 1960s, Ed Thorpe used his knowledge of probability and stock market statistics, making huge sums of money.

Using his gambling skills, he conquered the financial market. Thorp's first hedge fund, the Princeton Newport Partner, has never lost a year. The fund's compounding rate was 19.1% over 20 years, completely beating Wall Street.

His second fund, which was run from August 1992 to September 2002, has an annual rate of return of 18.2%.

3. The mathematician is a super trader - D.E. Shaw


David Shaw is the founder of D.E. Shaw, one of the most successful quantitative investment firms in the world. In 2018, he had a whopping $ 590 million in income with a net worth of over $ 5.3 billion.

Shaw brought together America's leading mathematicians, physicists, and computer experts to develop a variety of automated trading models that allowed his fund to continuously profit from the market by leveraging on his differences in prices of different securities.

This whole trading strategy is very complicated, involving thousands of financial instruments including stocks, options, warrants, convertible bonds, ... all over the major markets around the world.

Over the years, Shaw's company has grown and sold many subsidiaries, including Juno Online Services, a financial technology company sold to Merrill Lynch, an online brokerage, company. market creation and many other companies.

In addition, Shaw is actively involved in the field of computational biochemistry, research updates, and capital investments in a number of related businesses.

Later, Shaw handed over the management of D.E. Shaw gives a team of leaders so that he can devote all of his time and dedication to the research and development of the field of computational biochemistry.

Epilogue

Both Jim Simons and D.E. Shaw are all on the list of the top fund managers and traders with the highest income in the world in 2019.

Honestly, with the ability to think acutely about math, traders will give themselves an outstanding advantage in the market. However, to make lasting success in a career, each IQ is not enough.

We need to have other prerequisites such as the ability to take risks, comfort with heavy pressure, or a long-term vision to be able to build a hedge fund with stable returns over the years

Anyway, if you are a math enthusiast and trading with algorithms, give it a try! Live with the passion that flows inside you, so that you won't regret anything in the future!.