Broadly, there are 3 types of systematic trading strategy that can "work".
In order of increasing turnover:
1. Risk premia harvesting
2. Economically-sensible, statistically-quantifiable slow-converging inefficiencies
3. Trading fast-converging supply/demand imbalances



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Replying to @therobotjames
4. systematic process for getting "alternative data" which most of the time means building creative scrapers at scale
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Replying to @FabiusMercurius @therobotjames
This is a really good point, many of our longest lasting alphas are ones where we think most others don’t have the data — normally because building the data set requires having a particular relationship and recording it as it comes in (no third parties to buy it from)
11:54 PM - 14 Apr 2021
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