[meeper16]

I've been on the hedge fund algo side for years. You're spot on and it's what a lot of these guys on this thread are clueless about.

Basic or simple approaches can be combined with others and be statistically/mathematically sound and robust.

Some work for periods of time, some don't, some stop working. Algorithms degrade over time and that's continued optimization is a must.

Case and point: LTCM and the story behind black scholes algo running up against a black swan.

I'd highly recommend watching this for the others reading this thread that really just are familiar with the whole space:

https://www.youtube.com/watch?v=lmvxZgnwwD4

[jevgeni]

> black scholes algo

Black Scholes isn't an "algo". Sweet mother of god...

[meeper16]

No need in explaining the difference between an algorithm that wraps around an equation or to call an equation a "model" or to call a model a "formula". Take your pick but focus on the meat of the discussion if possible.