[darthtrader]

I think we are in a "Quant bubble" right now. I noticed that last year looking at the autumn gold ctas that it seemed like a dirty word to put anything other than "0% discretionary" when it came to strategy. The no name state university here now has a "financial engineering" degree. When you have billions and billions all doing the same stat arb mean reversion stuff it seems like someone is going to have to be left holding the bag. Its not like these strategies are so mysterious. I've read Rentech model how they themselves will effect the markets from using their models but I don't think you can model what will happen to your model when everyone else is using the same model.