And the amount of money to be made is small in any event because there’s just not enough participation in the markets.
Aren’t prediction markets just a special case of financial markets? (Or vice versa.) Then if your algorithm could outperform prediction markets, it could also outperform the financial ones, where there is lots of money to be made.
In prediction markets, you are betting money on your probability estimates of various things X happening. On financial markets, you are betting money on your probability estimates of the same things X, plus your estimate of the effect of X on the prices of various stocks or commodities.
Aren’t prediction markets just a special case of financial markets? (Or vice versa.) Then if your algorithm could outperform prediction markets, it could also outperform the financial ones, where there is lots of money to be made.
In prediction markets, you are betting money on your probability estimates of various things X happening. On financial markets, you are betting money on your probability estimates of the same things X, plus your estimate of the effect of X on the prices of various stocks or commodities.