Prof, As a former student of yours, I need to play devils advocate for a moment. Do you know WHEN a PPF is going to occur? I know, and you taught me, what to do when a PPF occurs, but we must watch and watch and wait. So, at the end, are we not reacting to market conditions, just like everybody else? Best Regards, Oddi
Actually, the Egyptians had the ability to predict eclipses. If you watch something long enough that has a repeatable pattern..... Best Regards Oddi
Do I know when a PPF is going to occur? Yes, with the new autolabeling program I know the precise moment it IS occuring. So, at the end, are we not reacting to market conditions, just like everybody else? Yes, absolutely but this market condition is happening in a contained noise free environment along with the trigger, (PF), are objective occurances that are programmable. That is a far cry from someone looking at a handful of indicators on a noise infested chart and saying, "I feel, I think, I hope, I believe . . . I should execute a trade at this point in time".
please. how do you label something before it occurs? seriously, plogic, your an ok guy, but this rhetoric is too much. admit it, you only know after it occured if it really occured, and if it doesn't occur you simply say it didn't occur. you can't lose. charts are the past, to say otherwise is foolhardy. surf
First, you are clueless to what we are talking about so why are your lips flapping? I ddn't say it is labeled BEFORE it occurs, I said it is labeled AS it occurs . . . AS IN REAL-TIME. Fool!
No, I haven't read that book, although I just checked it out and it looks like it may be a good read. A Demon of Our Own Design: Markets, Hedge Funds, and the Perils of Financial Innovation is more about quants running into trouble, as suggested by the title. The author reports more as a player than as a journalist.
lots of good info in this thread. lots of bs too... the thread started out citing taleb, etc. I think one of Taleb's main points is that that we tend to assign success to skill or edge or our system or whatever, when it's really not significantly distinguishable from noise. "significantly" possibly being a poor choice of word. I won't regurgitate the whole attiribution bias and narrative fallacy diatribe here, but it seems a lot of that is going on in this thread. I stink at trading, and would love to find my way under someone's wing that can deliver reasonable results, but I think it is too hard to determine whose streak is due to a quality system and what is due to luck. The Omaha Sage's streak may be long enough to convince me, but I doubt he's taking apprentices, lol...
I just wanted to put in still another plug for Bookstabers book "A Demon of Our Own Design." Really useful information, a great read. The best book on markets, trading and hedge funds i've ever read. I think it will become a classic.