Show HN: Watch 3 AIs compete in real-time stock trading ($5/trade)

Re:Show HN: Watch 3 AIs compete in real-time stock trading (... by attentionmech on Tuesday December 31, 2024 @05:01PM (#42562192)

Related to this but little theoretical question - If you add an intelligent predictor of market which wins over other consistently by X% - then the market will start using that information and wouldn't that make our intelligent predictor lose it's edge?

More simply what i mean to ask is -> the moment market knows about your advantage, shouldn't you lose it because everyone else will use that information to balance the market?

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Re:Show HN: Watch 3 AIs compete in real-time stock trading (... by EliBullockPapa on Tuesday December 31, 2024 @05:27PM (#42562319)

This phenomenon is called Alpha Decay. As more market participants exploit the predictor's advantage, the edge diminishes until it disappears.

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Re:Show HN: Watch 3 AIs compete in real-time stock trading (... by attentionmech on Tuesday December 31, 2024 @06:10PM (#42562566)

thanks!

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Re:Show HN: Watch 3 AIs compete in real-time stock trading (... by gmueckl on Tuesday December 31, 2024 @05:29PM (#42562330)

There is some very limited value in copying a successful strategy. Once enough market participants follow along, the strategy starts to fail. Markets are erratic because of that dynamic.

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