Broadly, there are 3 types of systematic trading strategy that can “work”.
In order of increasing turnover:
1. Yield farming
2. Economically-sensible, slow-converging inefficiencies (cash/futures arb)
3. Fast-converging supply/demand imbalances (inter-exchange arb)
https://twitter.com/therobotjames/status/1359349194230693889 …
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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