Bayesian methods

Anybody using or used in the past a Bayesian method in his/her trading? How do/did you like it? If you stopped using it, what was wrong with it?

I believe nitro mentioned that he uses Bayesian stops. Anybody else using them?

Thanks for feedback.

 

I have considered it, but have not developed much into the idea. Nate Silver talked about this in his book “The signal and the noise” if I remember correctly.

 

I think any form of system that employs stops and momentum is a bayesian system. Doubling down is the anti-bayes system.

 

I currently use far more complicated system than just Bayes stops, but that is how I got started.

 

The new Kelly formula is Bayesian.

http://www.elitetrader.com/et/index.php?threads/a-new-kelly-formula.291307/