Pursuit of efficiency is a common mistake. I believe, though I could be wrong, that Bridgewater concluded the only goal in investing is to make the correct choice more than 60% of the time though greater than 80% is extremely stellar. So long as you make the correct decision more than the wrong decision and account for the degree of risk you can afford to be inefficient and still outperform the competition by an order of magnitude.
Sometimes it is hard to know what the right decision is when current market forces suggest you should make the wrong decision or when every decision is apparently the right decision. In those cases you need historical data to compare against. The way they describe it it isn't any different than writing a basic algorithm, except there are many more variables to consider.
Sometimes it is hard to know what the right decision is when current market forces suggest you should make the wrong decision or when every decision is apparently the right decision. In those cases you need historical data to compare against. The way they describe it it isn't any different than writing a basic algorithm, except there are many more variables to consider.