Predicting randomness

Discussion in 'Trading' started by oddiduro, Nov 3, 2005.

  1. No, I haven't....

    What is it, and how does it relate to trading?
     
    #351     Nov 18, 2005
  2. bighog

    bighog Guest

    a 3 dimensional look at things......SPARE ME PLEASE!!!!!!

    WHY not 4 or 5? Traders keep coming up with new ways to blow themselves up, just like Victor did.

    They just find new ways to lose their money to us plain and simple traders...Ya, GOTTA love this game.....:)

    The only things i see as random are coin flips and Bush's escape plan for leaving the country he invaded.......:eek:
     
    #352     Nov 18, 2005

  3. hello hermit,

    what testing can you point to that shows TA as being something that works?

    VN and the team apply the scientific method in an exacting fashion to the market, testing massive amounts of data, across lengthy time frames, using the latest and best programs--- like it or not, the results speak for themselves.

    surfer
     
    #353     Nov 18, 2005

  4. excellent post, odd.

    :)

    surfer
     
    #354     Nov 18, 2005
  5. cnms2

    cnms2

    You're posts have a predictable part and a noise part ... :)
    (interestingly enough it's the same part: Bush-bashing = predictable noise)
     
    #355     Nov 18, 2005
  6. cnms2

    cnms2

    You rely here on the prediction that if you buy at good prices then stocks will go up. This assumes they don't behave randomly.

    I don't think that the cited experiment proves that TA doesn't work. It sounds like all those medical studies that we find daily in the news, and you can't (and shouldn't) rely on their conclusions.

    David Hume: "No amount of observations of white swans can allow the inference that all swans are white, but the observation of a single black swan is sufficient to refute that conclusion."
     
    #356     Nov 18, 2005
  7. Pekelo

    Pekelo

    I am surprized that this thread is still going on, because it has jumped the shark so long time ago. Anyway, because I am trying to be helpful, here is a little info for those who think the markets are unpredictable: :)

    http://www.cassadaga.com/history/

    "Known as “The Psychic Center of the World”, Cassadaga,FL continues today as the premiere psychic community and is home to some of America’s finest psychics."

    A 1/2 hour reading cost only $45-65 and that is cheaper than many of the online newsletters. If you are not in the neighbourhood, readings via telephone is also possible....

    Now, can we finally put to rest this thread?
     
    #357     Nov 18, 2005
  8. In Vic's corner you have a statistician with a bull personality. From my reading of Niederhoffer's writings it is very evident that he sees no evidence of reliable recurrence of black-swans. Vic does a lot of writing premium on indexes, specifically puts because he doesn't think the market is going to plunge.

    Therefore, Niederhoffer would be correct 99% of the time. However, all the gains that Vic built up prior to 1997 were wiped-out because he was still investing the entire portfolio with the same bull attitude and the market behaved outside of its normal "99% of the time" behavior.

    The reason visual ta "can" work SOMETIMES, is that if enough people use it at the same time they will all derive similar conclusions about future market directions. It becomes self-fulfilling prophecy per-say.

    BTW, I am just using 99% as an example, not as an actual probablity...
     
    #358     Nov 18, 2005
  9. cnms2

    cnms2

    Here there's an article on Niederhoffer and Taleb: Blowing Up
     
    #359     Nov 18, 2005
  10. I have read that article and looked around because I was curious about how empirica has performed...didn't find anything. My interpretation of Empirica is that institutions find it more of an insurance pool than an actual hedge fund. As much as Vic blew up, I don't think Taleb is making money for anyone other than Empirica...

    I could be wrong and would love to see otherwise, but I wasn't able to find info otherwise; I interpret that as not being profitable for investors...
     
    #360     Nov 18, 2005