Intuition Amplifiers 2

I guess it would do no harm to publish a simple formula I use to assess the Intuition Efficiency. It would be interesting to know what numbers could be achieved. My best subjects exhibited the numbers in 500 to 600 areas. It is an objective test that anyone can perform. Here how it works.

Allow a period of time where you watch a security of your choice. Mark your Intuitive entry and exit prices. Then calculate:

Number of trades: N (where N must be significant , i.e. >= 400)

Success factor: J = Sum(number of winning trades)/Sum(number of losing trades)

Profitability Factor: k = Average Win/ Average Loss (in dollars)

Gain Factor: g = J/(J + k)

Pain Factor: p = Average Win/Max Drawdown (in dollars)

And finally – Intuition Efficiency Factor: E = g * p * squareroot(N)

Try it! You’ll learn a lot. I had traders that consistently beat the best mechanical systems.

 

Is the dot closer to the top or to the bottom of the triangle? If your answer is “top” you are among 98.4% of people who suffer from this visual illusion (the dot is actually at the dead center of this triangle).The reason why it is so important is because in the price charts certain points look much different from what they really are. That, in turn, prompts a trader to make wrong decisions and fall under the spell of the charts. I have been studying the “stock chart illusions” for quite some time now and I can show you hundreds of pitfalls that most of the TA folks do not even suspect exist!

 

Imagine folding a sheet of paper on itself 100 times. Roughly how thick would it then be?

 

"God, give us grace to accept the things that are true, courage to challenge the things which are untrue, and the wisdom to distinguish the one from the other".


Reinhold Niebuhr

 

Although perception requires attention, unattended stimuli can subtly affect us. Moreover, implanted ideas and images can automatically-unintentionally, effortlessly, and without awareness-prime how we interpret and recall events. Our Intuition, if not trained and not amplified, could be easily buried under blanket of noise and subtle primes.

 

2**100 sheets

great thread. i use some of the stuff you mentioned here.

 

i know you guys try to automate this.

me ready to piggyback

 

One sheet of paper is roughly 0.0038”. So, 0.0038 X 2^100 = 2 x 10^28 miles that is approximately 800 trillion times the distance between the Earth and the Sun.

 

It seems the dot is located exactly at the center of the Square, rather than the triangle. Probably I am wrong on this!

 

If you make your decisions by looking at a chart without any aids you will be subject to many not perceived optical illusions. By picking the right aids you can reduce the illusions but not eliminate them.
Be aware that the illusions exist and try to be careful. No one is perfect but thankfully perfection is not required in in any endeavor.
As an aside whenever responding to any illusion question be sure you understand the question and don't accidentally modify it. A snap judgement is invariably wrong.