[Cryptonomics] Crypto Quant Trading Firm Alameda Research and FTX [Video]

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Sam Bankman-Fried is the CEO & Co-Founder of Alameda Research. We discuss what a quant trading desk does in crypto, a 7,000 BTC trade on Binance, market neutral strategies, and their new exchange FTX.

Interesting interview; this is the level of analysis needed to make regular profits from a highly volatile and heterogeneous market such as cryptos.

One of their projects is FTX. Apart from being an exchange it also trades its own indexed basket of cryptos.

ALT-PERP tracks the price of a basket of altcoins, using a weighed average of the prices of BCH, BNB, BSV, EOS, ETH, LEO, LTC, TRX, and XRP. Get exposure to 9 different coins with one future!

Designing indexes that work and are meaningful is not so simple. Should such an index be weighted by market cap or price - or not weighted at all? Established stock indices also have protocols for adding and removing companies; this too needs to be decided so that it is seamless, robust and withstand extreme volatility.

To those people who worry that altcoins are pushed over an abyss, remember that fintech companies and individuals are just not going to kill the algos that lay such golden eggs. Just look at the early history of railroad companies.


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4 comments
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Indices are always pretty hit or miss. It’s interesting to see the analysis done to make them, but I still prefer the fundamental technology side quite a bit more

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It's tricky because of having the behemoth BTC - bit like having a stockmarket with the East India Company listed.
I would go for market cap weighting (like FTSE) and not the weird contortions of the Dow, especially as coins do not have a fixed supply.
Thanks for the comment.

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This will be great to see thanks for sharing checking it out

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Thanks, is quite long; I ended up skipping to the parts tht appeared most interesting.
I was also amused that the guy is a Physics grad ;-)

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