Rats trained to play the forex market (opens in new tab)

While it is certainly true that professional money managers don't beat the market on average, this does not imply that they destroy value.

Professional money managers and speculators in general, at least in principle, more efficiently allocate capital as a result of their speculative activities. This causes overall returns to increase. In a world without money managers/other speculators, market returns would be lower overall.

The simple model: in a world without money managers/speculators, overall returns might be 2%. In a world with 1 speculator, returns might be 2.1% and that speculator might achieve returns of 4%. In a world with many speculators, they might all achieve returns of 4%, and none of them would be beating the market. They are creating value, however.

(Another reason they don't beat the market is that many of them are not trying to. The manager of my Vanguard Target Retirement 2050 fund is currently trying to beat the market. In 2040 his goal will be to minimize risk.)

What the rats are doing (if this is not a well done prank) is exactly equivalent to what 'technical' traders and chartists do. As to why these techniques work; they are reacting to the intentions of other traders signaled in data. This may be a case where knowledge of the "underlying reality" that the market is reacting too (supposedly) is a disadvantage because it prevents noticing and reacting to the actual data.

That said, this whole thing reads like an elaborate practical joke.

They are providing valuable liquidity to our financial markets. Is it too much to ask that they be rewarded for their contribution to society.

Seriously, this is the most ingenious thing I have seen in a while.

He claims after selectively allowing the best performing rats to breed the second generation of rats performed better than the first generation. If it were survivorship bias the second generation should be no better than the first.