Agustin Lebron - Trading, Crypto, and Adverse Selection

Agustin Lebron began his career as a trader and researcher at Jane Street Capital, one of the largest market-making firms in the world. He currently runs the consulting firm Essilen Research, where he is dedicated to helping clients integrate modern decision-making approaches in their business. <br/><br/>We discuss how AI will change finance, why adverse selection makes trading and hiring so difficult, & what the future of crypto holds.<br/><br/>Watch on <a target="_blank" href="https://youtu.be/3BBNG0TlVwM">YouTube</a>, or listen on <a target="_blank" href="https://open.spotify.com/show/4JH4tybY1zX6e5hjCwU6gF">Spotify</a>, <a target="_blank" href="https://podcasts.apple.com/us/podcast/the-lunar-society/id1516093381">Apple Podcasts</a>, or any other podcast platform.<br/><br/>Episode website + Transcript <a target="_blank" href="https://www.dwarkeshpatel.com/p/agustin-lebron">here</a>.<br/>Buy <a target="_blank" href="https://www.amazon.com/Laws-Trading-Traders-Decision-Making-Everyone/dp/1119574218">The Laws of Trading</a>.<br/><br/>Follow <a target="_blank" href="https://twitter.com/AgustinLebron3">Agustin on Twitter</a>. Follow <a target="_blank" href="https://twitter.com/dwarkesh_sp">me on Twitter</a> for updates on future episodes.<br/><br/>Check out my blog: <a target="_blank" href="https://www.dwarkeshpatel.com/">https://www.dwarkeshpatel.com/</a><br/><br/>Subscribe to find out about future episodes!<br/><br/>Timestamps:<br/><br/>(00:00) - Introduction<br/><br/>(04:18) - What happens in adverse selection?<br/><br/>(09:22) - Why is having domain expertise in trading not important?<br/><br/>(15:09) - How do you deal when you're on the other side of the adverse selection?<br/><br/>(21:16) - Why you should invest in training your people?<br/><br/>(25:37) - Is finance too big at 9% of GDP?<br/><br/>(31:06) - Trading is very labor intensive<br/><br/>(36:16) - Overlap of rationality community and trading<br/><br/>(48:00) - The age of startup founders<br/><br/>(50:43) - The role of market makers in crypto<br/><br