Alright, quite a ba(y)sed point there, very nice. My lazy ass is looking for a heuristic here. It seems like the more the EMH is true in a situation/amount of optimisation pressure applied the more you should expect to be disappointed with a trade.
But what is a good heuristic for how much worse it will be? Maybe one just has to think about the counterfactual option each time?
It seems like the more the EMH is true in a situation/amount of optimisation pressure applied the more you should expect to be disappointed with a trade.
Yes, this is exactly right—post #2 in the sequence is about what environmental factors increase or decrease the prevalence of adverse selection, and ways to improve trading (and everyday decision making) in light of it. Stay tuned :)
Alright, quite a ba(y)sed point there, very nice. My lazy ass is looking for a heuristic here. It seems like the more the EMH is true in a situation/amount of optimisation pressure applied the more you should expect to be disappointed with a trade.
But what is a good heuristic for how much worse it will be? Maybe one just has to think about the counterfactual option each time?
Yes, this is exactly right—post #2 in the sequence is about what environmental factors increase or decrease the prevalence of adverse selection, and ways to improve trading (and everyday decision making) in light of it. Stay tuned :)