I came across the video. It seems all arbitrage trading is doing is reinventing the wheel. Or what it's missing is knowledge in Wave theory. In the example where the reversion to the mean didn't happen and the price continued up, trapping the short position. (19:50 min time stamp) That's an extension (motive) wave... their model should have accounted for that.
Um that's the whole point lol. They didn't know that it was going to be LATE because they don't incorporate wave principles. To paraphrase the movie, The big Short... Being early is the same as being wrong. In this case being early in the expectation of the mean reversion time line based on previous data.