Warren Buffett spent his entire life beating the stock market... then bet a million dollars that it was impossible to do. Go to http://www.groundnews.com/aotp for a better way to stay informed. Subscribe for 40% off unlimited access to world-wide coverage through my link.
Through my own experience as a crypto arbitrage trader during the 2017 bubble, we'll discover how traders actually function as unpaid researchers who make markets more efficient for everyone else. From simple spatial arbitrage to complex algorithmic trading, each attempt to beat the market ultimately strengthens it.
Key topics covered:
The geometry of arbitrage opportunities and market efficiency
How market makers provide liquidity and reduce price slippage
Warren Buffett's Coca-Cola investment and long-term value discovery
Statistical arbitrage and pairs trading evolution
Renaissance Technologies and Jim Simons' mathematical approach
William Sharpe's "Arithmetic of Active Management"
Why index funds capture collective market wisdom for free
This isn't investment advice - it's an exploration of how markets really work and why passive investing has such a strong mathematical foundation. Whether you're a beginner investor or experienced trader, understanding these mechanisms reveals why the most sophisticated game on Earth rewards those who refuse to play.
Thanks for watching!!!
Time Stamps:
0:00 - Introduction: Buffett's Million Dollar Bet
1:15 - The Trading Paradox: Parasites vs Bees
2:00 - My Crypto Trading Story Begins
3:30 - Order Books and Market Making Explained
5:00 - Price Slippage
5:15 - Cornering a Market
6:45 - Competition Arrives: Bots Take Over
8:00 - Multi-Exchange Arbitrage Discovery
9:30 - Building the Trading Algorithm
11:00 - The Geometry of Arbitrage
12:30 - From Present to Future Arbitrage
13:15 - Warren Buffett and Coca-Cola Analysis
15:45 - Paul Tudor Jones: Mr. Market in Action
17:00 - Statistical Arbitrage: Coke vs Pepsi
17:30 - D.E. Shaw's Scaling Revolution
20:00 - Jim Simons and Renaissance Technologies
22:30 - William Sharpe's Market Portfolio Theory
24:15 - John Bogle and the Index Fund Revolution
25:30 - The Grossman-Stiglitz Paradox
26:15 - Conclusion: Why Refusing to Play Wins