Framing it as machine learning undersells the problem.
It's a hybrid model trading in an adversarial, real-dollar environment. The leverage comes from having a small human team trade big volume, much more than they could possibly trade directly, by augmenting their human abilities with automation and a model. Or seen from the other side, it's a model with human oversight.
Any system like that is high risk, high reward. All the successful ones started out by losing a lot of money. Paypal lost an incredible amount to fraud before they started breaking even. OpenDoor lost an incredible amount to mispricing, and took on a ton of balance sheet risk, before their business really started working.
It's a hybrid model trading in an adversarial, real-dollar environment. The leverage comes from having a small human team trade big volume, much more than they could possibly trade directly, by augmenting their human abilities with automation and a model. Or seen from the other side, it's a model with human oversight.
Any system like that is high risk, high reward. All the successful ones started out by losing a lot of money. Paypal lost an incredible amount to fraud before they started breaking even. OpenDoor lost an incredible amount to mispricing, and took on a ton of balance sheet risk, before their business really started working.
"To live, you must be willing to die"
- poker legend Amir Vahedi