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That's not necessarily true. A market anomaly does not disappear instantaneously, but instead decays gradually as it is exploited and in turn becomes harder to exploit. Think of it as a radioactive half-life. Some research (I found the link on Mark Buchanan's blog http://physicsoffinance.blogspot.com/) suggests that half-life is quite long.


It depends on the timeframe. Trend-following anomalies may take years to go away but HFT anomalies disappear every day.




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