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> If you are so certain that they are dumb and arriving at incorrect prices (but quickly) it should be easy for you to go trade against them and make a lot of
by brownbat 12y ago
> If you are so certain that they are dumb and arriving at incorrect prices (but quickly) it should be easy for you to go trade against them and make a lot of money.
It is easy to do this, as demonstrated by the article. Just con the algorithms with fake newsfeeds.
That's also illegal though, so no one is going to go out and prove it. They shouldn't need to when we can see natural experiments like this.
- harryh 12y agoIt's easy to con the algorithms now with a fake news story because such fake news stories are extremely rare and not worth programming against. If such stories were common the people who run these programs would update the to better reflect how the real world was working and your ability to profit against them using this strategy would go away.