The guy "hasn't got a clue". Basically, inventing random algorithms (even if they back test ok) is a good way of losing all your money. Fundamentally, there are people who write algorithms based on past prices, largely trend following. They generally think they are doing well, without realising that they are making money by being generally long a rising market. Then they lose it all. Then there are the other people who have inside information, largely details of other peoples trades they can front run. They generally make money over the long run. You are not them.