u/No-Permission3429 ·
Reddit — r/algotrading
· March 22, 2026 at 08:54
· ⬆ 15 pts
· 💬 29 comments
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AI Summary
Summary
The author is a beginner to algorithmic trading asking if retail quants can realistically beat a simple buy-and-hold strategy of the S&P 500.
They hypothesize that finding near-stationary signals, specifically through statistical arbitrage, is the most logical approach to combat market non-stationarity.
Quality assessment: Noise / Beginner inquiry. This is a general discussion question about trading methodology, not actionable due diligence or market analysis.
Score15
Comments29
Upvote %78%
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Hi everyone,
I never did algo trading before but I studied it. I went through some of the literature on modeling order books, how the market internally works, and how giant firms make money, etc.
I'll be direct compared to strategy like long term buy and hold do you guys come up with something with a better annual return than S&P500? if not I'm assuming it's not worth it.
I'm wondering how to make real profit. I'm a PhD student in computational biology and I'm still wondering if there is really money to make in trading when competing with trading firms? I might create a very good strategy but it might just be a sophicated way to lose money.
Trading / the market is essentially non stationary, so if I were to try making money if focus on find near stationary signals within the data. that's would make everything easier. I'm thinking of statistical arbitrage. Any trader her doing money with that strategy?