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I wish this guy the best in improving his algorithm. If it really worked, it could do a lot of good. But the economy is so complex, I doubt he'll ever make the model more accurate than a coin toss. I predict the model will just make people overconfident in their investment decisions.


Investing is anti-inductive; if his algorithm actually starts to be used in investment decisions, people will keep gaming it until it will no longer be a useful signal.


Reflexive is the term used by George Soros: http://en.wikipedia.org/wiki/Reflexivity_(social_theory)#In_...




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