Thought experiment:

You find an algorithm that is very reliable for forecasting the near-term prices of an asset. Your algorithm only works in contemporary, or at least recent, markets. You notice that by building a basket of many assets, you can increase your leverage as you have a reduced the volatility of returns. You DO UNDERSTAND that there is a possibility of major failure, but you assign it a low probability and decide to let it ride for the time being. After all, after a certain level of profit, you can scale back the risk. The profits are too good, so you never scale back. Thus, you are the one standing when the music stops.

The end.