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Fun fact I love to repeat: Quanta Magazine gets most of their funding from the Simons Foundation which gets some of its proceeds from the Medallion fund, which uses deep, mathematical techniques to perform absurdly successful daytrading, most of which comes from other daytraders losses. So every time someone loses money on Robinhood, they contribute to Quanta Magazine lol.

Source at 17:55: https://youtu.be/Q2u0dKRA1cA

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It's fascinating how their algorithms only seem to work for insiders.

"...Renaissance Technologies’ famed Medallion fund, available only to current and former partners, had one of its best years ever, surging 76 percent, according to one of its investors. But it was a different story for outsiders who are only able to invest in other RenTec funds — two of which had their worst years ever. ..."

https://www.institutionalinvestor.com/article/b1q3fndg77d0tg...

My naive guess? Incentives.

Their institutional fund, which at one point was claimed to be capable of managing $100B, is also a dog.

And with 1.9% fees!

Nice story, though daytrader orders are very unlikely to be matched with such algorithms in practice. The majority get filled internally by the retail provider, or by order flow aggregators they route to before the orders make it out to an open market exchange.

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