Re:Michael Lewis hits back
by consz on Friday April 11, 2014 @10:46PM
(#7576769)
They have slightly positive return per trade, and they make millions of trades per day. Their PnL is the sum of their trades -- the expected values grows like O(n), while the volatility grows like O(sqrt(n)), so for n = several million, the probability their PnL will be negative is extraordinarily low.
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