Quote from subes:
Thank you for the feedback.
-- About the reverse engineering:
It gets harder when you increase the degree of automation by not only generating combination of rules the developer wrote himself, but also generate individual rules. Genetic programming/neural networks produce rules that can not be easily understood by a developer. This is the degree of control that is revisited in the "5.1 Categorization" chapter. Here the developer again decides about where he wants to position his tradeoff.
-- About the feedback loops:
- Figure 4 is not an activity flow comparable to the other figures, thus not depicting a process with a feedback loop. It is more something between a use case and a sequence diagram.
- Figure 6 is directly copied from Robert Pardo and not edited by me, instead only cited in the description of the figure. After the figure I comment on the incorrect feedback loop there in the paragraph starting with: "Also as a difference, the "Refine Strategy" step is modeled...".
-- About the importance of the API:
It is necessary to describe the API on which a developer works to define a concept for a platform he can develop on. The thesis has to balance the investors and developers view and thus describes both views. I would say they are equally important with the API being a lower level detailed view of parts of the feedback loop where the developer actively is required to do his work. Without this, the process would not be complete or not sufficiently described to be used.
-- About the orthogonality:
I do not understand where this refers to or how it affects what the text says. Can you elaborate this a bit further? Thanks!
To better undrstand where I am coming from, my career did involve getting educated formally and going through the thesis process. I did work at one job after graduation and my employer did put me through theoretical physics as a preformance enhancement trechnique. Later, I did a stint in academia (Subtended by consulting via a top tier US Ivy League business school.) Then I drifted into government via a lot of cabinet level departments and then EOP. Problem solving was my general routine.
I feel the best addition to problem solving is money. Therefore, I have dealt with the core problem of creating wealth.
On page 60 you apply your trple tiered model to value investing and I quote:
1. "The best time to buy a company is when the market price is above the intrinsic value."
and
2. "The time to sell comes when the intrinsic value is less than he market price."
1. is MP> IV.
2. is IV < MP.
In this paradigm of two HS, the switch in the independent variable and the switch in the dependent vaiable violates Keynes' paradigm theory. Also you just said the same thing twice.
I see you work around some of this problem but your HS is incomplete.
You have good work and you laid the ground work (and acknowledged the sources satisfactorily) and you do present your new ideas on three shell levels.
Mark Brown is humorous in his point making since he just generalizes "processings" of other independent goal oriented systems. As a note the Blox value of the Sharpe Ratio for one app I do in stocks is 60+.
So assign the independent variable to IV and let MP in various default forms be the dependent variable. Assume you do this as a mathematical requirement dictated to you by Carnap (Boole's Algebra) and Arithmetic Operator conventions.
In 4.3.2 the money making has four periods (two moments and two processing periods.) You left out the Wait which is located between Sell and Buy. Wait is also the key element of the outer shell of protfolio management. Thus, you then have a cyclic system. This will further revealed to you how making money works in the other half of market operations you did not have to present.
All four parts require IF independent, THEN dependent form of expression.
Add the 4.3.2 key terms to your vocabulary. In the vocabulary add the first use page reference for each term. This facilites the reader's study of your hard work.
Now, I can answer your question.
As you see trending is a process where a series of events take place.
As you also see, buying and selling are each just moments where one event takes place.
All references to time series analysis can die on the spot at this point in market management development. You have build a new indicator system and associated signals This sentence is just the usual QA statement to show your achieved milestone.
You have shown "value investing" to be based on "two line theory". See Figure 18 for the "indicators" of the two variables: independent (IV) and Dependent (MP).
A formula exists that is applied across the board for IV. It is a first and second shell API weighted Filter where all elements of the filter are expressed in boolean criteria or range criteria (where often a mean or mediun is used rather than and extreme of range.
MP comes from the market and SP = 0.5MP
You are inventing a system to run a portfolio from information. your invention is an "automation" of a dynamic system.
Buy and sell are done with the independent variable indicator and its signals. I like seeing IV turn from a negative slope to a positive slope (and vice versa) where all indicators (lines) are commonly ranked on a single universal scale. Thus value investing where stocks compete for capital.
Optimizing making money is done with the "automating" indicator linkage of the function whereby MP is a function of IV, i. e., the "hold" indicator and it's signals. You use an API shell to show the MP variation within an API buy/sell API shell.
Hold and Wait are processes of trend events. (Call it continuation of capital application)
Buy and sell happen in a moment. (Call them End Events or change of capital application)
For capital application, continuation and change are orthogonal.
Processes and single events are orthogonal. Non intersecting cause and effect sets.
In logic, this can be amplified greatly.
All of your events in continuation are muturally exclusive to your buy and sell events.
There are about three times more buy and sell vents than continuation events.
During various encomomic and econometric stages sub subsets of continuation and sub sets of buy/sell are moe or less probable. What you system is introducing to the world is the dynamic of being able to float the "container of automated system analysis" on these ripples, waves and tides of markets and their instruments (your shells so to speak). Congrats.
I'm not knocking what you are doing; instead I feel I am allowing you to think about things and further refine. I am not suggesting you change specific things for a particular purpose. Do your own thing and just temper the places where you are going to get push back from those who guide and enable you in your formal education.
In court rooms, things can get dicey if you are not prepared. ET and school are not court rooms by any means. I like the court room. It is adversarial and judgements get made.
Sounds very interesting. Is it this one: 