Re:Ask HN: Has Anyone Here Ever Built Financial Trading Models?
by gokuknows on Tuesday January 10, 2012 @11:21AM
(#3447482)
"common knowledge of models usually means they lose their profitability" what do you mean by that?
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Re:Ask HN: Has Anyone Here Ever Built Financial Trading Models?
by JamesPeterson on Wednesday January 11, 2012 @03:36AM
(#3450913)
If you have a model that beats the market it some way, you'll profit by making deals that are only available because the market does not understand them as well as your model.
If the market understands your model, you may as well throw it into an index; all opportunity for such deals will be absorbed by the market if it knows of them.
Your aim is to be better than the market.