Edward Thorp · Math genius who beat the dealer and the market

[@ChatWithTradersPodcast]

Get the full transcript of this interview, here: chatwithtraders.com/edward

[@leemthompo]

Edward Thorp starts @ 4:00

[@schrodingerscat3912]

seriously you couldn't have invited a more legendary guest. Chat With Traders is on point. i suppose next we will hear from James Simons, John Taylor, or Myron Scholes

[@amsbeats841]

The fuckin ghost of Jesse Livermore himself!

[@dudea3378]

@@amsbeats841 Homeboy went bankrupt many times, doesn't hold a candle to Simons

[@nowaela]

love hearing people who lead the human pack.crazy mind crazy intelligence

[@natanluiza2936]

This man is one of my childhood heroes. I love to hear him talk about his thoughts in the casino. The way he was thinking about it. Never think about irrelevant things, especially your inner child.

[@Yogita19777]

Very inspiring 👍. Thanks for talj with ed👌

[@peterp4753]

I didn't watch the video yet, but this guy is the man, I read about him before !! He knows how to truly headge his investments/trades.

[@devonnelson6931]

This is an exceptional interview. One of the great minds of our time.

[@ff4444]

Great episode Aaron!!

[@SirRickYoYo]

Thanks Aaron for the great interview from Mr. Thorp. As you know he is a great hero amongst serious traders. I bought "Beat the Market" back abound the year 2000 for the insight he gives and the motivation. I still read it on a yearly basis more for the scientific mind he put into words in the book. I learned so much listening to this interview, particularly with the Kelly Criterion and happy he graced you with an interview. Thanks for sharing it with us.

[@ahmedbob423]

Rick Wyatt Trading And did it help improve your results?

[@SirRickYoYo]

Classical Liberal over the years I have become much better. utilizing Risk management first and foremost was the key to stay in this game but learning how to read order flow was the biggest turn around. The book helped me to understand how to become more neutral in the market wish is really hard this day and age but not impossible.

[@ahmedbob423]

Rick Wyatt Trading How is that hard? Seems pretty straight forward.

[@byronrich2780]

Every time I find a new trader , Aaron’s already interviewed them 🔥

[@IRON_NIC]

Although this episode was less about market and trading, I find it one of the best and most helpful and interesting overall. Aaron you are doing a great job!

[@qs6085]

Expected more views? Mr Thorp is a genius and a champion! 🏆

[@Financere425]

true genius, to beat roulette, blackjack, and the stock market is quite a feat. But also gives good advice on life. Great interview the only thing i thought should have been asked is how his systems would work in todays market. also in the casino.

[@David-0100]

The was actually a guy who figured out how to beat Blackjack by card counting before Thorp. The man was a mathematical genius. However, Thorp is credited with with the scientific paper that had a mathematical theory for beating blackjack. Oh and the guy that figured it out before Thorp rarely used a calculator. Thorp's wearable computer for roulette it's a concept illegal in many parts of the world, and the exact computer has changed due to a different design of roulette wheels than in the 1960's. Blackjack is possible due to the great variety of casinos now compared to the past. However I believe that it is possible to earn more using less money in the gambling game of poker. Thorp has stated that poker takes a much longer time to analyse mathematically than blackjack, and similarly, I believe that poker also requires more time and effort for the player to earn money, by studying and practicing, than blackjack. Simply put, there are not fortunes to be made.

[@hiatuz3512]

OMG I love your show I been listening for over 6hrs today! and many hrs over time! now and this is nextttt :)

[@georgemcdowell6166]

Thanks, Aaron! Another outstanding interview! I couldn't wait to listen to this.

[@fabian13333]

Beautiful interview thanks

[@billblass8184]

Hi Aaron! Great interview! Follow you religiously! You said yourself at the outset that you wanted more time with Ed--I couldn't agree more. Too much time spent on the Blackjack story, which is a whole life story in itself, but, no time spent on what he did in his hedge fund days, and no real delving into trading intracacies--you scratched the surface of a diamond--bring him back! P.S. Find out how he looks so young for a man of his age--must have been a very balanced life! Best always! Bill Blass

[@matatik]

Amazingly intelligent individual.

[@hasben0]

Yo I had no idea he interviewed Ed Thorp....the godfather himself. Both of his books are legendary. Also, nobody pronounces "zero" like Ed.

[@danielzha7826]

Reading the book right now, insightful and fun.

[@trixy8669]

The key to this is hard work. Due diligence is not enough. You have to throw all your intelligence into trading to be successful. Play the probabilities not charts. Fascinating.

[@nb7260]

The ads are a bit out of control on this one. Every couple mins makes it difficult to watch.

[@petermullan2168]

Love your channel man. Thanks for all the episodes!

[@JeanCharlesEvrard]

Wait, he speaks this well at 84 years old ??

[@MW-vg9dn]

@Rex2212 He even looks like a guy in his 40s or 50s . I wouldn't believe he's that old if I didn't see a 1950s TV show with him.

[@tc3724]

You forgot to mention his looks too. He looks 20-30 years younger than 84

[@idealistbanda574]

Maybe he found a way to beat ageing also

[@checkthenutz]

Non smoker lol

[@superagario9249]

Well, he’s not dead yet.

[@tubewatcher38]

Good interview. Thorp's latest book is very interesting & educational.

[@David-0100]

Thank you for uploading; insightful questions and good rapport.

[@shahrukhchowhan9533]

Best Episode

[@brickstunram9391]

Superb. It's all in the risk management people. And then after that becoming a good trader hahaha

[@TroyboyTv]

there's no risk management only risk taking

[@tlawengmophosho4848]

No, he has a mathematical edge,

[@Reotha]

hands down,Aaron did his job in the field

[@JP-wq6sb]

Terrific interview. Good job

[@hamisintunzwenimana8083]

Great 1. General: Trading edge 2. Fundamental Principles

[@kevinparsley6806]

this guy is truly a quant no pretending what so ever...

[@tr0wb3d3r5]

42:24 "they drugged my drinks" lmao for free?¿

[@hasben0]

Also, you should have asked him if he is ever going to publish his version of the Black-Scholes model.

[@gregandsonia]

There are many advantages which traders simply ignore. They either don’t know they are there or they know of their existence but don’t think or understand that these are advantages which can give them an edge. In a sense trading successfully is nothing more than the conscious accumulation of advantages until the odds, probabilistically speaking, are weighted in your favour. Once one talks about probability, the issue of time is automatically introduced and this is a crucial insight which winners have. They understand that once they have swung the odds in their favour they must give them time to work. That is another reason why too short time frames are the wrong perspective for most traders.

[@David-0100]

Everything you have said is basically common sense.

[@michaelblue6150]

"Where lays money lays problems"

[@bang9427]

great interview :)

[@tuannguyen-yt8ty]

This is one best advice 👍

[@ciceroaraujo5183]

simply magnanimous

[@JePe-on4ff]

Too many ads knock it off

[@igorinvernizzi95]

why don't you put subtitles on your videos? It would be very useful because are very interesting

[@borys444]

That makes no sense, y would u need subtitles when u have audio?

[@kerricksmith7199]

Nicholas Huss deaf people exist. Also, people that speak other languages use automatic translators based on the closed captions.

[@jacobjackson7458]

Jason Sniffer virtual assistants are not expensive.

[@fmalexander5555]

I heard Ed was staking HEX ☕🎩

[@ramonefisher9748]

The best way of thinking in the world of the best way of trading for the next Warren Buffett

[@turbojorge]

So did he basically say trading is actually more challenging than gambling at a casino? I think I heard that somewhere.

[@David-0100]

I think he once said that the certainty of one's advantage is easier to determine more precisely in casino gambling, specifically blackjack, whereby one can know precisely the probability of being dealt a certain hand, and then bet accordingly using Kelly criterion. Where as in trading one may only be able to have a rough guide as to the "edge". Surprisingly however Kelly criterion works even in this scenario, however one's bets maybe slightly more conservative.. . . In other words, yes trading is more challenging than gambling in a casino. Thorp didn't say why but I presume this is because trading is much more complex mathematically, but I could be wrong as I am not a mathematician, and or as previously stated, the precise advantage cannot be determined absolutely.

[@mikepignataro8465]

This man is amazing if you ever read his portion in Market Wizards you'd understand the true intelligence behind this man. 227/230 months he beat the market using an arbitrage strategy...going off efficient market hypothesis this would be a 1 in 44billion probability. Therefore this man is either an anomaly or the efficient market hypothesis is wrong:)))))

[@hooregi4500]

EMT doesn't state that the markets are 100% efficient. There are varying levels to it. EMT states there are three levels: weak, semi-strong, and strong. The weak form assumes that current stock prices reflect all available information, and that past price performance has no relationship with the future. In other words, this form of the hypothesis says that using technical analysis to achieve exceptional returns is impossible. The semi-strong form says that stock prices have factored in all available public information. Because of this, it's impossible to use fundamental analysis to choose stocks that will beat the market's returns. Finally, the strong form of the efficient market hypothesis says that all information - public as well as private - is incorporated into current stock prices. This form of the efficient market hypothesis essentially assumes a perfect market, and isn't plausible when there are insider trading restrictions. I might be two years late, but do your research before making sensationalist comments like that.

[@hooregi4500]

Now comes on which ones you believe in. People usually subscribe to weak, and semi-strong form. I believe in a mix of both, that fundamentals (weak form) drive the markets in the long-term, but liquidity (semi-strong form) drives it in the short-term.

[@TravisPavlik]

Does Ed Thorp age?

[@schrodingerscat3912]

no he's a mathematician

[@David-0100]

No.

[@brandond2868]

His mind doesn't.

[@palasako8732]

Dude, apparently he said that his ultimate goal is to live forever and that he plans on freezing his body when he dies in case they invent the tech to bring him back

[@syncopowerstations]

Two years to get the Phd?

[@tysswe1]

Being a dull man, i wonder how easy things must be when you have a calculator for a brain. Regular life must be soooo easy for him.

[@zkhan9936]

no way that guy sounds like that at his age.... seems fishy

[@thetaeater]

I know this is the kind of stuff you do when promoting a book and I love chat with traders but this kind of ruined the mystique of this legend for me. At least they didnt really talk about trading.

[@mihaiarnautu8893]

Awful accent