Let’s try something different today!. Normally, I try to read a lot of books during the year related to 2–3 topics that I decide to deep dive for a period of time. Recently, a friend suggested that I write about some of those books in this weblog. I am no book critic so I don’t think I have a lot to add from the book review standpoint but maybe there is some value on sharing some of my basic impressions about what I have been reading.
Let’s start with the first book I read this year: The Money Formula is a fun ride into the world of quantitive finance. Authored by mathematician David Orrel and my favorite quant in the world: Paul Wilmott, the Money Formula explores the universe of financial derivatives and quantitive analysis. The book begins with a historical perspective of financial speculation and dives into important aspects of the finance ecosystem such as risk management before unveiling the curtain to the world of quants and derivatives. From the basic ideas of quant trading to exploring the role of quants in financial crises, The Money Formula provides unique perspectives of how mathematics are ruling the current markets.
Wilmott and Orrel are considered two of the most original thinkers in the quant space and their perspectives about financial markets are nothing but insightful and original. With quantitive trading experiencing a renaissance in the current markets and new financial products such as crypto currencies challenging traditional concepts, the ideas explored in The Money Formula couldn’t be more current.