The Risks of Overreliance on Mathematical Models in Stock Trading

The Risks of Overreliance on Mathematical Models in Stock Trading

We discuss how recent theory traders have been heavily relying on mathematical models to time their stock market buying and selling, without fully understanding the underlying assumptions of these models. This has led to accusations of financial engineering causing market disruption during the global financial crisis, as some models concluded certain securities were safe when they were actually extremely risky.

https://youtube.com/shorts/2LtW2Aq8zrA?si=QqDZ1zSjUWFccV5W

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