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Success in predicting markets is measured in profit. This research team should start a company that offers a service that allows users to deposit bitcoins, whi
by runeks 12y ago
Success in predicting markets is measured in profit.
This research team should start a company that offers a service that allows users to deposit bitcoins, which the company then invests according to their alleged predictions, and then pay interest on deposits, and keep a part of the profit for themselves.
Doubling the initial investment one time is one thing, but this hypothetical company being able to double its investment every 50 days for years is something else. I doubt they can. A doubling every 50 days is x160 every year.
I think claims of being able to predict market prices should be met with great skepticism. Especially prices of easily traded commodities, including bitcoins.
The only proper measure of an ability to predict market prices is profit, because profit also measures the extent of the predictions: how much can you move the market (by trading according to your predictions) until you can no longer predict what will happen? Obviously, there's a limit. No one can extract unlimited profit from any market. So there definitely is a limit to how much you can earn from your algorithm. If you can earn 10% p.a. on an investment of maximum $5000, your algorithm isn't really worth much. If you can earn 1000% p.a. on an investment of up to $100M, your algorithm is great. But without knowing these figures we really only have a claim, seemingly a claim of them being able to make a lot of money, but choosing not to do so.
- deleted 12y ago[deleted]