Late billionaire trader Jim Simons explains alpha:

He explained it in a way where I now know less about alpha. But that’s my fault, not his.

The f-g algos "The Medallion Fund focused on very short holding periods (few days on average). It exploited tiny price discrepancies and correlations across thousands of trades, often in futures, currencies, equities, and other instruments. It was not long-term "investing"

I'm too dumb to compete with this guy, for "regular Joes" like me alpha is simply the cake available to only very few investors that is an excess return over the assetclass with the highest return historically - the broad US stock market.

Alpha is your ability to spot ETF inflows and outflows and frontrun those ETFs to make a profit.

Legend! Crazy he lived not far from me

What he's saying is his strategy is going to make that much money as market-neutral, regardless. Hence orthogonal to the S&P.

@A_18_K

i don't buy it.

@grok what's alfa and beta in regard in this video? Rip Jim

🤔 very interesting

@Grok puedes traducir este video

So, have the rise of quant funds/hedge funds combined with the modern market landscape (zero SEC enforcement; PFOF; infinite naked shorting) hindered one’s ability to acquire and use alpha without having supercomputers/algos at one’s disposal?

legi

Unclear