newguy wrote:I found it hard to understand the logic in the interview. Very mixed and contradictory presentation of what goes on. He almost implies that people should use their 'guts' instead of quantitative analysis. Anyway, I don't think the number or brains of people trying to figure out the market really matters. It's always been controlled by emotion more than anything and that's a really simple thing to understand. The more complicated you try to make it, the less robust your theory becomes. He even states the 90 phd's are doing data mining. Why? Do they want to model the past perfectly?
randomwalker wrote:and if emotion is quantifiable into a trading algorithms...
There sometimes seems to be no limit to how far people will go to make financial data scream. You can find strong statistics, and useless investment signals from butter production in Bangladesh, the US population of 9 year old kids, and now, in a dramatic breakthrough, relating average penis size to GDP growth, a key measure of stock market returns around the world.
ghariton wrote:How about the argument that frequent traders, including HFTs, provide additional liquidity and so benefit the rest of us?
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