The key insight here is that having a slight edge in the market is definitely possible if you have the resources and advantages of, say, Citadel or RenTech. I'm rooting for you!Īlso a slight edge in the market is not improbable wouldn't u think? Just something that happens 60 percent of the time would be enough to marginally outperform the market correct? So good luck! Maybe you'll be the one who succeeds. I always give the same answer everytime this question comes up: There are thousands of hedge funds that have entire teams of quant PhDs working on this problem full-time, and they spend tens of millions of dollars on data and computing resources you can't even imagine. Do you really think you are such a genius that your part time hobby project developed on a budget of almost zero by a teenager with no training in investing will find a working strategy that all those hedge funds overlooked? At the very least, you should have a story about where you edge is coming from and why your strategy hasn't already been arbitraged away by other algo traders who have access to all the same data and tools that you do.īut everytime I say that, people always reply with the same objections: my capital is smaller so I can pursue trades that are too small for big hedge funds, or what about Ken Griffin who was just like me when he started his hedge fun as a college student, or I'm not saying I'm a genius but I did read lots of books about investing and that's why I was able to find this amazing strategy that no one ever discovered before.
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