HACKER Q&A
📣 piyiotisk

How to beat S&P 500 algorithmically?


How to beat S&P 500 algorithmically?


  👤 TheAlchemist Accepted Answer ✓
I highly recommend you "The Little Book That Still Beats the Market" by Joel Greenblatt.

This approach works - it's just a longer term algorithm. You will need patience, but over time, you will probably beat S&P 500 by a large margin.

Now, if you are looking for algorithms that trade 1000 times a day etc - forget it, or go find a job at an algorithmic trading shop.


👤 cercatrova
If anyone knew, they certainly wouldn't tell you. If you knew, you wouldn't be asking this question and you'd be rich already.

👤 d--b
First you need to define “beat”. Usually people think of it as “better return”, but investors prefer Sharpe or other measures.

Then you need to define a term. Eventually holding treasury bonds is likely to “beat” s&p. You just need to wait for the next big selloff.

And then there is no magic bullet nor free lunch. It’s all a big casino.

Anyone who assures you otherwise is not to be trusted.


👤 aristofun
Wasn’t it shown many times already that it’s impossible to generally and reliably beat the market unless you have some cheat (inside) or in some very specific rare cases?

Isn’t it what they teach in economics classes these days?