Arbitrage quantitative trading helps eliminate inefficiencies from the market, bringing prices back to reasonable levels, essentially neutralizing the noise. Overcrowded trading can create new noise. If the market consists entirely of quantitative trading without retail investors, I believe prices will converge infinitely towards an efficient market.
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Arbitrage quantitative trading helps eliminate inefficiencies from the market, bringing prices back to reasonable levels, essentially neutralizing the noise. Overcrowded trading can create new noise. If the market consists entirely of quantitative trading without retail investors, I believe prices will converge infinitely towards an efficient market.