בקיצור, אלגו טריידינג מוצלח שמבוסס מתמטיקה\סטטיסטיקה\ביג דאטה ולא על מהירות (וכנראה זה שהם התחילו עם זה הרבה שנים לפני שזה הפך להיות מאוד נפוץ גם לא הזיק).
The firm uses
quantitative trading, where staff tap data in its
petabyte-scale
data warehouse to assess statistical probabilities for the
direction of
securities prices in any given market. Staff attribute the breadth of data on events peripheral to financial and economic phenomena that Renaissance takes into account, and the firm's ability to manipulate large amounts of data by deploying scalable technological architectures for computation and execution.
[20] In many ways, Renaissance Technologies, along with a few other firms, has been synthesizing terabytes of data daily and extracting information signals from petabytes of data for almost two decades now, well before
big data and
data analytics caught the imagination of mainstream technology.
[21]
For more than twenty years, the firm's Renaissance Technologies
hedge fund, which trades in markets around the world, has employed complex mathematical models to analyze and execute trades, many of them automated. The firm uses computer-based models to predict price changes in easily traded financial instruments. These models are based on analyzing as much data as can be gathered, then looking for non-random movements to make predictions. Some also attribute the firm's performance to employing
financial signal processing techniques such as pattern recognition. The book
The Quants describes the hiring of speech recognition experts, many from IBM, including the current leaders of the firm.
