I find it interesting the psychological battle that goes on in many traders between wanting to automate (objectivity), and those that prefer price action (subjectivity) or other subjective methods to base their trading decisions.
What is interesting about this is that perhaps without knowing it, people here are working towards some of the deepest problems in mathematics, computer science, and philosophy - the theoretical basis for computability. It is ancient, but the modern world started with Galileo.
There are many ways to make money trading. However, I must admit that for myself, in modern times I have never met a subjective rich trader. True. in the old days of the pits, there were no computers. Still, pit trades used (O+H+L+C)/4 and had bands around those numbers to buy or sell support/resistance.
The question of whether human beings can trade intuitively is very attractive to me because I do not believe the human mind is a machine, at least not a von-Neuman machine. Godel and Turing had some great back and forth on this, e.g.,
http://www.amazon.com/Computability...r=1-2-catcorr&keywords=godel+computer+science
but I must admit I have never met a profitable trader that trades completely subjectively. Imagine having no indicators on your screen. Imagine just a matrix of numbers, imagine watching those numbers and trading from the impact that this action has on your nervous system, based on feel (your nervous system becomes a Kalman Filter for numbers). Or maybe not that extreme. What about people that can look at charts with no indicators at all, just price and volume, and make intuitive trading decisions?
Phi is tied to Integrated information theory
"...The theory is based on two key propositions. The first is that every observable conscious state contains a massive amount of information. A common example of this is every frame in a movie. Upon seeing a single frame of a movie you have watched you instantly associate it with a "specific conscious percept."[2] That is to say you can discriminate a single frame from a film with any other single frame, including a blank, black screen. The mind, therefore, can discriminate amongst a massive number of possible visual states..."
http://en.wikipedia.org/wiki/Integrated_information_theory
What is interesting about this is that perhaps without knowing it, people here are working towards some of the deepest problems in mathematics, computer science, and philosophy - the theoretical basis for computability. It is ancient, but the modern world started with Galileo.
There are many ways to make money trading. However, I must admit that for myself, in modern times I have never met a subjective rich trader. True. in the old days of the pits, there were no computers. Still, pit trades used (O+H+L+C)/4 and had bands around those numbers to buy or sell support/resistance.
The question of whether human beings can trade intuitively is very attractive to me because I do not believe the human mind is a machine, at least not a von-Neuman machine. Godel and Turing had some great back and forth on this, e.g.,
http://www.amazon.com/Computability...r=1-2-catcorr&keywords=godel+computer+science
but I must admit I have never met a profitable trader that trades completely subjectively. Imagine having no indicators on your screen. Imagine just a matrix of numbers, imagine watching those numbers and trading from the impact that this action has on your nervous system, based on feel (your nervous system becomes a Kalman Filter for numbers). Or maybe not that extreme. What about people that can look at charts with no indicators at all, just price and volume, and make intuitive trading decisions?
Phi is tied to Integrated information theory
"...The theory is based on two key propositions. The first is that every observable conscious state contains a massive amount of information. A common example of this is every frame in a movie. Upon seeing a single frame of a movie you have watched you instantly associate it with a "specific conscious percept."[2] That is to say you can discriminate a single frame from a film with any other single frame, including a blank, black screen. The mind, therefore, can discriminate amongst a massive number of possible visual states..."
http://en.wikipedia.org/wiki/Integrated_information_theory