Check this chart. One would have to be a damned stupid trading bot not to notice the redundancy in this series. Smart bots check the information efficiency of the series, and compute an approximate SNR for the series. Then these smart bots decide, using their programmed values, how much information to they want to reveal given the current SNR of the market. The stock market obeys Shannon Theory use it, Shannon did. We have a name for it, Kelly Betting.
HT Modeled Behavior commenting on a John Cochrane article.
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