Part 8/11:
Innovative strategies developed by figures like Jim Simons, founder of the Medallion Fund, highlight how machine learning and advanced statistical techniques can identify complex relationships among various stocks. By doing away with traditional assumptions about the market and embracing a purely mathematical approach, these models can predict subtle price movements based on a multitude of factors that other traders may overlook.
This technological evolution has rendered the once-exclusive realm of seasoned traders accessible to algorithms that react in microseconds, fundamentally reshaping trading dynamics in a hyper-efficient marketplace.