"mathematically impossible"

Originally posted by daniel_m
that's right gekko. did you know there is an alternative?

check out the Dvorak Simplified Keyboard.

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
 
Originally posted by gnome


Higher math? You really a mathemetician? I have a friend who teaches high school math... told him the 2 most valuable classes I ever took in school were typing and 7th grade algebra. Still use it. How's this... y=mx+b (Hint... "less is more") :D
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
 
Originally posted by vladiator


You description of the possible self-fulfilling prophecy effects of large scale momentum investing is correct. However, I don't quite see how it's related to index investing. Index funds are not trying to beat the index by following some strategy (e.g. the momentum strategy you are referring to). They are merely trying to replicate/track the performance of the index. If some stocks in the Nasdaq100 went up in value, I don't see why the QQQ fund would load up more on those, and vice versa. They are just trying to stay as close to the index as possible.

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.
 
Originally posted by Traden4Alpha

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

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
 
Originally posted by daniel_m
Funk and Wagnalls. LOL.

i rememeber those encyclopedias. i had as em a kid. "mom, i just read it in my Fuckn Wagnalls!" :D

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
 
Originally posted by gnome
Do you remember buying them at the grocery store? Seems like they were $2.99/volume... Hell, maybe only $.99 each.
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. :)
 
Originally posted by 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
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
 
Originally posted by Traden4Alpha
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

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
 
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