Financial Systems Engineering

Computational Finance | FinTech | AI in Finance | Financial Systems Engineering

[Financial Systems Engineering @thefselab]

𝙒𝙝𝙮 𝙁𝙞𝙣𝙖𝙣𝙘𝙚 𝙉𝙚𝙚𝙙𝙨 𝙖 𝙎𝙮𝙨𝙩𝙚𝙢𝙨 𝙀𝙣𝙜𝙞𝙣𝙚𝙚𝙧𝙞𝙣𝙜 𝘿𝙞𝙨𝙘𝙞𝙥𝙡𝙞𝙣𝙚

Finance is becoming increasingly complex.

But complexity alone isn't the story.

The real story is that finance is becoming infrastructure.

(1/10)

[Financial Systems Engineering @thefselab]

Take a deep dive on why traditional finance doesn't adequately explain modern financial ecosystems and the need for a system discipline.

[Financial Systems Engineering @thefselab]

Finance Has Changed
→ Existing Disciplines Are Insufficient
→ The Financial System Becomes the Object of Study
→ Financial Systems Engineering Emerges
→ A New Discipline Is Born

[Financial Systems Engineering @thefselab]

𝙒𝙝𝙮 𝙁𝙞𝙣𝙖𝙣𝙘𝙚 𝙉𝙚𝙚𝙙𝙨 𝙖 𝙎𝙮𝙨𝙩𝙚𝙢𝙨 𝙀𝙣𝙜𝙞𝙣𝙚𝙚𝙧𝙞𝙣𝙜 𝘿𝙞𝙨𝙘𝙞𝙥𝙡𝙞𝙣𝙚

Finance is becoming increasingly complex.

But complexity alone isn't the story.

The real story is that finance is becoming infrastructure.

(1/10)

[Goshawk Trades @GoshawkTrades]

an important concept in trading that nobody wants to hear:

if a strategy is super comfortable to hold, the returns have probably already been arbitraged mostly away.

risk premiums exist precisely because they're painful. momentum works because holding through extended drawdowns and whipsaws is brutal. carry works because you're exposed to blowups. mean reversion works because you're buying things that look like they're going to zero.

the return is part of the compensation for enduring the pain.

this is why so many traders build a strategy, hit the first real drawdown, and abandon it, they didn't realize the drawdown wasn't a bug. it was the price of admission.

no pain, no premium.

[Financial Systems Engineering @thefselab]

@GoshawkTrades The market obviously rewards those that are willing to expose their portfolio to market risk factors.

[Financial Systems Engineering @thefselab]

Finance Has Changed
→ Existing Disciplines Are Insufficient
→ The Financial System Becomes the Object of Study
→ Financial Systems Engineering Emerges
→ A New Discipline Is Born

[Financial Systems Engineering @thefselab]

Check the details here:
https://t.co/s0hdJdQhEl

[Financial Systems Engineering @thefselab]

Take a deep dive on why traditional finance doesn't adequately explain modern financial ecosystems and the need for a system discipline.

[Financial Systems Engineering @thefselab]

Disciplines:

• Systems Engineering
• Finance
• AI
• Distributed Systems
• Cybersecurity
• Risk Engineering

[Financial Systems Engineering @thefselab]

𝙒𝙝𝙮 𝙁𝙞𝙣𝙖𝙣𝙘𝙚 𝙉𝙚𝙚𝙙𝙨 𝙖 𝙎𝙮𝙨𝙩𝙚𝙢𝙨 𝙀𝙣𝙜𝙞𝙣𝙚𝙚𝙧𝙞𝙣𝙜 𝘿𝙞𝙨𝙘𝙞𝙥𝙡𝙞𝙣𝙚

Finance is becoming increasingly complex.

But complexity alone isn't the story.

The real story is that finance is becoming infrastructure.

(1/10)

[Financial Systems Engineering @thefselab]

What skills will future financial engineer/architects need?

[Financial Systems Engineering @thefselab]

Financial Systems Engineering may become the discipline responsible for designing the next generation of financial infrastructure.

(10/10)

[Financial Systems Engineering @thefselab]

The future of finance may depend less on better predictions and more on better system design.

(9/10)