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Using AI for trading (media.piefed.world)
submitted 11 months ago by to c/memes@lemmy.world
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[–] 2 points 11 months ago* (3 children)

They rebalance continuously.

On the margins. You're not seeing the whole portfolio turn over day by day.

Even if they waited it wouldn’t matter .001% of $1 billion a month is the same as .001% of $333m daily.

Which 401k is flipping $333M of balance sheet every day?

Also, how many days do you think are in a month?

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  • [–] 1 point 11 months ago (2 children)

    Sorry I dropped a decimal. 33.3*30

    Your 401k isn't $33 million a day. It's the funds behind it that are trading daily.

    .001% of $33M from the Vanguard Index means you lose .001% of the $50k in your 401k which holds Vanguard.

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  • [–] 2 points 11 months ago (1 child)

    It’s the funds behind it that are trading daily.

    $33M/day is an enormous churn, even for a big pension fund. Again, I'd like to see where you're finding these numbers. The NYSE trades $18.9B/day across a pool of $52T in asset value. By proportion, you're talking about a fund with a $90B market cap showing that kind of activity.

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