Some of the trading signals they identified weren’t especially novel or sophisticated. But many traders had ignored them. Either the phenomena took place barely more than 50 percent of the time, or they didn’t seem to yield enough in profit to offset the trading costs. Investors moved on, searching for juicier opportunities, like fishermen ignoring the guppies in their nets, hoping for bigger catch. By trading frequently, the Medallion team figured it would be worthwhile to hold on to all the guppies they were collecting.
