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What is Profiting with Inferior Predictive Models about?

The paper challenges the notion that traders need superior predictive models to achieve consistent profits, demonstrating that profits can be made even with inferior models by decorrelating predictions from market prices. It introduces a strategy that leverages the inherent advantages of market takers over market makers, allowing for systematic profit generation through exploiting market inefficiencies. The authors provide insights into the implications of this approach across stock trading and sports betti

Author

rangan raman

Language

EN