joeteicher comments on Arbitrage of prediction markets - Less Wrong

6 Post author: taw 04 December 2009 10:29PM

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Comment author: [deleted] 07 December 2009 06:07:05PM 0 points [-]

Statistical arbitrage is named thus because over an infinite time period, it is arbitrage.

I don't think so. I think "Statistical arbitrage" is marketing. As long as there is risk of ruin statistical arbitrage is still risky, even over infinite time. LTCM isn't going to show a profit ever.