Another corollary statement: How do you make money from these trades? The only way this is possible over the long term is you are using information (whether that be facts or an algorithm) the parties on the other side of the trade don’t have.
The thing is, there is a certain stabilizing effect. There have been large funds that put together an algorithm and earned billions from the market. The problem is, over time each hedge fund as they win from their edge controls more and more of the funds invested into the market (~3 trillion at present). This in turn reduces the amount of gradient you can even extract value from.
Also, the way the big funds are doing it is not something an individual, regardless of where their personal intelligence falls, can replicate.
Another corollary statement: How do you make money from these trades? The only way this is possible over the long term is you are using information (whether that be facts or an algorithm) the parties on the other side of the trade don’t have.
The thing is, there is a certain stabilizing effect. There have been large funds that put together an algorithm and earned billions from the market. The problem is, over time each hedge fund as they win from their edge controls more and more of the funds invested into the market (~3 trillion at present). This in turn reduces the amount of gradient you can even extract value from.
Also, the way the big funds are doing it is not something an individual, regardless of where their personal intelligence falls, can replicate.