For all you financial business modelers of the world (from 2009). Paul Wilmott is a researcher, consultant and lecturer in quantitative finance. He is best known as the author of various academic and practitioner texts on risk and derivatives. twitter down You can read more at www.wilmott.com. Emanuel Derman is a South African-born academic, businessman and writer. He is best known as a quantitative analyst, and author of the book My Life as a Quant: Reflections on Physics and Finance; you can view his blog at www.ederman.com.
MODELERS OF ALL MARKETS, UNITE! You have nothing to lose but your illusions.
The Modelers’ Hippocratic Oath
~ I will remember that I didn’t make the world, and it doesn’t satisfy my equations.
~ Though I will use models boldly to estimate value, I will not be overly impressed by mathematics.
~ I will never sacrifice reality for elegance without explaining why I have done so.
~ Nor will I give the people who use my model false comfort about its accuracy. Instead, I will make explicit its assumptions and oversights.
~ I understand that my work may have enormous effects on society and the economy, many of them beyond my comprehension.
Emanuel Derman and Paul Wilmott January 7 2009