Chances are, the existence of a perfect trader would cause enormous shifts in how a market handles trading. This trader would, by default, be barred from trading, because her influence on the market would be staggering to the effect that it would influence the market itself. Even Warren Buffet has to temper things he says, so as not to accidentally push the market around.
But, assuming the FTC just decided to take a nap on the whole thing, I imagine those shifts in trading would so quickly dilute value that you'd end up with a system very similar to one we see now: machines doing the majority of the trading, but rather than on algorithms, more on observing Perfect Trader X.
If I were the trader with perfect information, I'd program my trading algorithms to lose (or at least not be guarenteed to win) 40% of the time. This would make you look merely like a incredibly fortunate trader, and not a perfect one. Just make sure that your algorithm guarantees an X% return per year.
Chances are, the existence of a perfect trader would cause enormous shifts in how a market handles trading. This trader would, by default, be barred from trading, because her influence on the market would be staggering to the effect that it would influence the market itself. Even Warren Buffet has to temper things he says, so as not to accidentally push the market around.
But, assuming the FTC just decided to take a nap on the whole thing, I imagine those shifts in trading would so quickly dilute value that you'd end up with a system very similar to one we see now: machines doing the majority of the trading, but rather than on algorithms, more on observing Perfect Trader X.