Every trader thinks the market is a fair fight. Ed Thorp - the only man who beat the casino and Wall Street - explains why some players simply cannot lose, and it has nothing to do with being right.
Ed Thorp - math professor who broke blackjack, then ran a hedge fund at 20% a year for decades.
he points to one firm that went public and had to reveal its record in the prospectus:
"for about the last 1300 trading days they had won every day except one - and the one day they didn't win was because they had a computer problem."
1299 winning days out of 1300. that is not prediction - that is access. these players see the order book 30 milliseconds before you do, and 30 milliseconds is the whole game.
your edge dies here. you are sizing bets on a coin flip while someone else reads the coin mid-air. the market was never a fair fight - it is tiered, and most traders sit on the tier that pays.
he names the firm, the number, and the man who turned Renaissance around. the edge was never being right. it is being first.
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