Now the quants are at the heart of yet another technological revolution in finance: trading at the speed of light. What are the risks of treating the economy and its markets as a complex machine? Will we be able to keep control of this model-based financial system, or have we created a monster?
Some of the hedge funds that do black box trading have been very successful in the past 10 - 20 years. One of the best hedge funds started in 1982 by James Simons, Renaissance Technologies (https://www.renfund.com) is said to be one of the most successful hedge funds in the human history. It currently has more than $15 billion in assets under management. Since 1989, the company's $5 billion Medallion Fund has averaged 35% annual returns, after fees.
Video clip below tells a story about greed, fear and randomness from the insides of Wall Street.