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I always find it hard to trust articles like this. Call me cynical but in the opening paragraph the author clearly states that they make their money from other
by peer2pay 4y ago
I always find it hard to trust articles like this. Call me cynical but in the opening paragraph the author clearly states that they make their money from other algorithms that lose money.
They therefore have a vested interest in filling the market with more such suboptimal algorithms that they can exploit for profit.
- sigmoid10 4y agoNoone will share an algorithm that can consistently and predictably beat the market online. Ever. It would be stupid, because the moment it goes out it destroys its own possibilities for excess returns. And if an algorithm doesn't outperform the market, you're automatically better off just buying and holding. 100% of these articles are useless if you want to be serious about investing. You might as well go and put all your money on a casino table.
- vgatherps 4y agoWhile unlikely in this case, a few ways this can play out is: 1. You’re connected to more venues to your counterparty, and can hedge out profitably even if their trade was good. 2. The loss is conditional on trading with you (maybe you can price a derivative very well). The counter parties might on average make money, except when you’re sitting on the right side of a mispriced derivative. 3. You lose money when trading with other bots, but are good at competing to provide liquidity to other traders who are not toxic on a short term