From the course: Algorithmic Trading and Stocks Essential Training

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Algo trading in practice: Who uses it?

Algo trading in practice: Who uses it?

From the course: Algorithmic Trading and Stocks Essential Training

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Algo trading in practice: Who uses it?

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- [Instructor] One of the best known algorithmic trading firms out there is a hedge fund called Renaissance Technologies. And in particular, Renaissance Technologies operates what's called the Medallion Fund, which is not only the most successful algorithmic trading firm of all time or trading fund, I should say, of all time, but it is also the most successful hedge fund of any type of all time based on the performance figures. There have been some studies done on the Medallion Fund. So this one, the "Medallion Fund: The Ultimate Counterexample?" by Brad Cornell is one instance of these studies. And basically what researchers have found in this particular case, they show that, and this is mind boggling when you think about it, if you had invested $100 in the Medallion Fund in 1988, by the time you reach 2018, which was the ending date for the data for this paper, that $100 would've grown to just under $400 million, meaning…

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