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The effective lifetime of a trading algorithm is only weeks. They need to keep iterating to remain competitive.

Just like a technical firm needs to iterate on the products and infrastructures. A trading firm needs to iterate on the algorithms and infrastructures to stay competitive.

Market changes constantly. Many trading algorithms are essentially market-data driven and need to adapt to the market or lose.

True. It is called GUAS (Grand Unified Arbitrage System) in DESCO. A highly configurable system where quants constantly try new algorithms.

It is a perpetual arms race.