WHEN EVERY TRADER USES AI, NOBODY BEATS THE MARKET

Summary from the TLDR Crypto newsletter

When all retail traders use the same LLMs with the same basic prompts, models converge on identical trade recommendations, producing herding rather than the efficiency gains classical EMH theory would predict. This convergence creates an adversarial opening: corporate IR teams will calibrate earnings disclosures to exploit model biases, and hedge funds will pre-position against the predictable retail AI consensus before it forms, with momentum strategies then amplifying the resulting price dislocations from fundamentals. The structural edge shifts to actors with proprietary data, superior or faster models, and the capacity to develop non-consensus theses, a gap that widens as retail AI tooling improves but remains generic.