"mathematically impossible"

Discussion in 'Trading' started by Gordon Gekko, Sep 27, 2002.

  1. #41     Sep 28, 2002
  2. gnome

    gnome

    Do you know what the speed record is for typing in today's standard format? And, any record of higher speed in an alternative layout? :D
     
    #42     Sep 28, 2002
  3. No, I'm not a mathematician, but I play one on these forums. :D

    If y=mx+b works for you, then that is great. In my own twisted way, I am trying to keep it simple (and my entry and exit rules are moronically simple). It's just that I find that simple questions (Which stocks should I trade? or How do I measure the risk of extreme events? or What is the right setting for some magic parameter knob?) all turn out to lead to complicated answers full of nasty pitfalls. And the answers get even more complicated when I realize that the market won't stand still for me.

    I know that less is more, but sometimes doing things right involves some pretty complex math and logic. Its like a rocket engine, the basic idea is drop-dead simple, but the design of a reliable high-performance reusable rocket engine is insanely complex.


    <b>Re: Typing Class:</b> My high school Typing teacher gave me a C- only after I promised not to take anymore typing classes! My hand-eye coordination is limited to my eyes having watch my darn hands very carefully. I'd never make it as a lightning-fingered scalper.

    Cheers,
    Traden4Alpha
     
    #43     Sep 28, 2002
  4. I saw this explained in Forbes a while back. Now that I think about it, I believe you are right and they were wrong. It does have the effect of concentrating the funds' portfolio in issues that are increasing in relative market cap, but this fact alone should not put any more upward pressure on those stocks than on stocks that are losing relative market cap.
     
    #44     Sep 28, 2002
  5. gnome

    gnome

    Ok, I give you a test...

    a. y=mx+b..."Less is more"... you're probably already using it in your most "moronically simple" trading rules. What is it?

    b. Do you know what Funk and Wagnalls is? (This is not an open book test... no fair searching the net.)

    :D
     
    #45     Sep 29, 2002
  6. Funk and Wagnalls. LOL.

    i rememeber those encyclopedias. i had as em a kid. "mom, i just read it in my Fuckn Wagnalls!" :D
     
    #46     Sep 29, 2002
  7. gnome

    gnome

    Do you remember buying them at the grocery store? Seems like they were $2.99/volume... Hell, maybe only $.99 each. And Rowan & Martin Laugh In always use to say, "look THAT up in your Funk and Wagnalls"... :D
     
    #47     Sep 29, 2002
  8. hehe i have the whole set above my computer right now. my mother bought them for me years ago. and yes, i think she did get them at the grocery store. :)
     
    #48     Sep 29, 2002
  9. Not sure if your question about y=mx+b (the equation for a line from 7th grade algebra) is facetious or not. Personally, if I'm in a predictive frame of mind, I prefer to write it as:

    Y[t+1] = C0 + SUM(Ci*Xi[t]) + Epsilon[t+1]

    <b>RE: "less is more"</b> Hmmmm..... I wonder if this a riddle, not just an indictment against complexity? I suppose it could be the bear's motto -- less (price) is more (profit). Or, it could be a recommendation for bottom-feeding -- buying at the lowest price. Or, if we combine y=mx+b and "less is more", then less X is more Y implies that m<0 (the slope is negative). Or, ironically, it could mean that complexity is inescapable -- there is no "less" because less IS more. Or, maybe its just a commercial for lite beer -- less (filling) is more (taste).

    Have I made it too complicated again??? The less I turn "less is more" into more, the better, more or less. :)

    I hope everyone avoids the less and gets the more,
    Traden4Alpha
     
    #49     Sep 29, 2002
  10. gnome

    gnome

    Yes, it's facetious. You get a SHINY GOLD STAR for knowing (or did you really have to look it up)... y=mx+b is the equation for a straight line. Now, do you USE the straight line "moronically simple" indication for a trading parameter? Couldn't be much LESS. Couldn't be much MORE! (Plus the lite beer thing.)

    Just goofing on you. :D
     
    #50     Sep 29, 2002