3 ms·
depends on the sharpe ratio. You can flip a coin every year. Heads; double your money, tails; lose your bet. You can easily win 3 years in a row (12.5% chance)
by valdiorn 12y ago
depends on the sharpe ratio.
You can flip a coin every year. Heads; double your money, tails; lose your bet. You can easily win 3 years in a row (12.5% chance), but getting 800% return on that risk is literally worthless in the long run, as the chance of winning or losing is equal.
- pfortuny 12y agoWhat I meant is... Those 'huge benefits of algorithmic hedge funds' depend on the number of algorithmic hedge funds: if there are enough of them, you will probably get some with outstanding results every year, won't you?