3 ms·

I wonder if there will come a day when financial investors can not do without this type of tool. Ever since Google became big, I've always assumed that they mu

• ct4ul4u 16y ago
  I'm sure that type of signal is valuable, but it takes a lot more than that to make money. It needs to be combined with a lot of other signal in order to come up with an estimate of alpha (idiosyncratic return). Then you need to understand how to remove market risk from your bets (what risk factors are you exposed to and what opposing positions do you need to take to minimize them). Some of the return will disappear in market impact (movement of the stock due to getting into and out of the position). The people who do this are expensive and apprenticeship is the only road to competence (the distance between theory and practice is vast). Finally, it's a distraction from Google's core business.