♏Scorpio:Dr.Throp

Tribute to Edward Thorp, the father of quantitative trading!

Edward Thorp, a genius mathematician and the originator of quantitative funds. He ignited the spark of hedge funds, which eventually developed into a prairie fire in the Wall Street market. When the hedge fund giants we see today were still in their infancy, Edward Thorp was studying with Shannon how to use mathematics and probability theory to be invincible in roulette and blackjack. He "raided" all the casinos in Lennox, Nevada overnight and successfully won tens of thousands of dollars from the "blackjack" table. In the 1970s, he turned his attention to the larger casino Wall Street and pioneered the first quantitative trading hedge fund. At that time, blockchain and digital currency were just a fantasy.

Relying on the law of large numbers and Kelly's law, Thorp was invincible in the casino and was later blacklisted by the casino. The principle of the law of large numbers is very simple. The more samples of random events there are, the more certain the results are. Just like tossing a coin, if you toss it 10 times, the ratio of heads and tails may appear in any way, but if you toss it 10,000 times, the ratio of heads and tails must be close to 1:1. For a certain hand of 21 points, Thorp does not know what the odds are, but as long as he plays enough games and follows his own card counting rules, he will definitely win. He only needs to follow Kelly's rule to place chips and not lose all chips when the odds are in his favor, and he will definitely win in the end. Similarly, he applied these principles to Wall Street. Thorp wrote mathematical formulas into computer programs to find pricing anomalies. Computer models can accurately calculate the reasonable price of warrants. Once there is a deviation, there will be an opportunity to bet. Thorp's fund heralds the transformation of the asset management industry towards quantification and mechanization. After Thorp retired, he handed over the baton of quantitative funds to rising stars.

During our years of exploration, we launched software with different code names at different stages to participate in the digital financial market, but in the end we named it Dr.Thorp. Dr.Thorp Quantitative is our tribute to the father of quantitative trading.

It will be opened immediately after completing the BINGO card task, so stay tuned!