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The 7 Algorithms
every quant should master

From Black-Scholes to Machine Learning — the models that move markets, explained from the intuition up, without getting lost in the formalism.

§ What you'll understand

  • How an option is priced, and why Black-Scholes changed finance for good.
  • Why Monte Carlo solves what no closed formula can.
  • How Markowitz turns risk into an optimal allocation decision.
  • The idea behind pairs trading, the Kalman filter and GARCH volatility models.
  • Where Machine Learning genuinely fits in the search for alpha.
PDF · 10 pages Visual charts Intuition first

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§1 Inside the guide

The 7 algorithms, one by one

01

Black-Scholes

The fair price of an option. The equation that opened the derivatives era.

02

Monte Carlo

When there is no closed formula, you simulate thousands of futures and average them.

03

Markowitz · Efficient frontier

How to split capital to maximise return for the risk you are willing to take.

04

Pairs trading · Ornstein-Uhlenbeck

Statistical arbitrage: betting that two assets return to their equilibrium.

05

Kalman filter

Pulling the clean signal out from under the market's noise.

06

GARCH

Why volatility arrives in bursts, and how to model it.

07

Machine Learning for alpha

Where ML genuinely helps in predicting markets — and where it is only sophisticated noise.

§2 Who's writing

Pablo, who teaches Quantum Club

Hi, I'm Pablo

I hold a degree in Physics from USC and a Master's in Nuclear and Particle Physics. I spent years among Feynman propagators, stochastic processes and simulations.

Today I apply that same rigour to markets: from the formalism of physics to pricing and risk management. In Quantum Club I translate all of it into something you can actually understand and build, wherever you are starting from.