EP 061: A scientific trading perspective, process over outcome, and the law of large numbers w/ Ari Pine

Aaron Fifield Podcast Leave a Comment


Ari Pine has many years of real market experience on his side, and during this time he’s traded a whole range of markets in various positions and roles…

Some of those include; working at J.P. Morgan, developing risk management software, trading for a long volatility hedge fund, making markets in gold and silver options, and even giving presentations to the Chinese stock exchange.

Moving forward to current times, Ari is now in charge of building out a quantitative trading group – approaching the markets from a scientific perspective, and asking “good questions” to solve trading problems.

Our conversation includes all the above, plus some really valuable info about; positive expectations, the law of large numbers, and process over outcome.

ari pine

Follow Ari on Twitter: @std_dev


Lessons learnt in this interview:

  • Ari’s timeline as a trader; neural networks at JP Morgan, making markets on the Pacific Exchange, trading with hedge fund veterans, giving presentations on options in China.
  • Why Ari and his group (Trade Co Global) have a focus of trading markets from a scientific perspective, with a top-down and bottom-up approach.
  • Process is more important than the outcome – why you need to evaluate your decision making process based on how you made your decision, not the outcome.
  • How to ask “good questions” about trading problems, what it means to put yourself in a position of positive expectancy, and how to use the law of large numbers.
  • The attitude and perception retail traders can adapt from professional traders who have been successful.

Links and resources mentioned:

  • More Than You Know by Michael Mauboussin – Ari gave this book praise, explaining how it shared valuable concepts for risk and decision making.
  • PineRT.com – Here’s a link to Ari’s personal blog, Pine Research & Trading.
  • TradingTechnologies.com – Ari mentioned he may begin contributing articles and thought-pieces to the Trade Talk blog in the near future.
  • @std_dev – Be sure to follow Ari on Twitter too.

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