Interesting thought though I’m pretty sure I read in @GZuckerman book that they trade signals “to capacity” and that’s part of the reason they are hard for others to find (the fact that they trade the signal hides the existence of the signal in recent market data)
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My intuition is that trading a signal to capacity (i.e. to maximize P&L) would speed it up, i.e. the price impact would be compressed into a shorter time period. To someone without the tools to analyse the signal on fast time-scales it may even look instantaneous (1/2)
i.e. it would look like the signal is correlated with same-period price change rather than future price change, so they wouldn't even both trying to trade it. Hard to say much more than that I think! (2/2)
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I made an attempt to explain it with a simple simulation here --https://twitter.com/macrocephalopod/status/1357377407322370054?s=20 …
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