4 ms·
2. No strategy can scale indefinitely. 3. Every strategy can be viewed as a sort of 'arbitrage'. 4. Applies to every strategy.
by concreteblock 6y ago
2. No strategy can scale indefinitely.
3. Every strategy can be viewed as a sort of 'arbitrage'.
4. Applies to every strategy.
- qeternity 6y ago> 3. Every strategy can be viewed as a sort of 'arbitrage'. No, it can’t. This is a bastardization resulting from the proliferation of “stat arb” to mean mispricing and is truly a misnomer.
- twic 6y agoWe have a running joke at work that our attempts at making money are "probabilistic arbs".
- concreteblock 6y agoYou're right. I was 100% thinking of 'stat arb' when I wrote that comment. What I meant to say that the way 'arb' is used is completely meaningless. Maybe a clearer comment would have been: "If rentech's strategy can be considered an arb, then every strategy can be considered an arb".
- qeternity 6y ago> "If rentech's strategy can be considered an arb, then every strategy can be considered an arb". Yep, agreed.