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Recently, discussions in CT and social circles have mainly revolved around the sharp decline of precious metals like gold and silver, as well as the interesting interactions on Moltbook. However, as the proportion of AI-driven HFT increases, known as algorithmic trading, the consequence is the phenomenon of sharp declines in a single day or over a short period, which can be referred to as the "fat tail effect" in financial markets;
The benefit is that during a bull market, this type of trading, due to its automated execution, will accelerate the progress of the bull market. The same applies during a bear market, where many orders fearing bubble risks can be ignited in an instant, transforming from hedging behavior into a large amount of short selling;
In fact, this cycle also reflects the declining returns of past quantitative arbitrage. Besides the decrease in volatility, a significant reason is that the number of participants has increased, primarily driven by algorithmic trading. Conversely, in the AI era, the opportunities for ordinary people to arbitrage are continuously diminishing. Recently, feedback from discussions with @cryptoxiao indicated that the current narrative is that people make money when a piece of news comes out, and they react and place orders at the fastest speed, while at other times they are just sitting idle. Therefore, they have been optimizing this workflow from information to order placement, and the current user feedback has been quite positive;
Assuming that in the future, a significant portion of ordinary people's investment decisions is delegated to their AI, what will the investment aesthetics of AI be? What new consensus will be established? If it approaches a homogenized buy or sell, then where will the source of returns come from?
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