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> millions of other incredibly talented and skilled people are also working on the same problem, and no one has really had much success such as to be notable I
by rytis 5y ago
> millions of other incredibly talented and skilled people are also working on the same problem, and no one has really had much success such as to be notable
I wonder how many strategies are profitable, but not at the scale that would be worthwhile for mid/large sized hedge funds to actually use. What I mean is that let's say I come up with some relatively naive strategy, that consistently delivers sub-1000/day profit. Can I just throw x1000 more monies at it and expect it to deliver 1M/day? I don't think these things scale linearly.
- emteycz 5y agoNo, you are looking for market inefficiencies, these have some size and it's improbable you'd find such a large one that nobody else found. And you'd start moving the market.
- ackbar03 5y agoJust anecdotally from reading about this stuff online, it's quite hard to do know and very crowded. Apparently alpha (profits uncorrelated with general market movements) generating strategies rarely last more than a few months before they stop working. This is why a lot of the hedge funds in this space (de shaw, citadel) actually end up dedicating more to discretionary (human strategies) because quant/automated ones are saturated and can't accommodate large size. But again this is what I've gathered from reading about this stuff, maybe someone with industry experience can chip in