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Zolde | 2 years ago

If a feature is used by many and has a predictable impact on their behavior it becomes profitable again.

If you act faster on the same feature as everyone else, or you predict the feature accurately, you can anticipate what the market will do in response.

The market often overreacts to new data. So if satellite imagery shows steep decline in parked cars, the stock will be predictably oversold. You can then take a contrarian position (buy the stock before it reverses to the mean).

Some commonly used features by popular public trading bots create predictable market movements, no matter if the feature itself is long-term informative/profitable.

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