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. Episode website + Transcript: https://www.dwarkeshpatel.com/p/agustin-lebron Apple Podcasts: https://apple.co/3Rhttnm Spotify: https://spoti.fi/3COMNEe Follow me on Twitter to be notified of future content: https://twitter.com/dwarkesh_sp Follow Agustin on Twitter: https://twitter.com/AgustinLebron3 Buy The Laws of Trading: https://www.amazon.com/Laws-Trading-Traders-Decision-Making-Everyone/dp/1119574218 TIMESTAMPS: 0:00 Introduction 4:18 What happens in adverse selection? 9:22 Why is having domain expertise in trading not important? 15:09 How do you deal when you're on the other side of the adverse selection? 21:16 Why you should invest in training your people? 25:37 Is finance too big at 9% of GDP? 31:06 Trading is very labor intensive 36:16 Overlap of rationality community and trading 48:00 The age of startup founders 50:43 The role of market makers in crypto 57:31 Three books that you recommend 58:47 Life is long, not short 1:03:01 Short history of Lunar Society