Basic strategy
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https://www.bloomberg.com/news/arti...at-never-could-happen-hits-wall-street-models
anyone knows how robust are quant based investment methods? This article seems to suggest they're not so robust afterall
Well, the article is referring to quant trading not investment. They are in the biz of high frequency trading. Think micro seconds, order types to jump queue and other latency issues. Recently, I got introduced to what is called a 'speed bump' to level the playing field but that's unique to the HFT world.
It is an arms race to the bottom. Using more money to buy more advantages to maintain the edge. The alpha is gone once it becomes a 'crowded trade'.
Hope this helps.


