Registry of Interests
open source, open genomics, open creation
Posted by
Glyn Moody
at
9:15 am
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comments
Labels: blogging, climate change, computerworld uk, consultants, journalism, okfn, shares
I have been a mathematician since the age of eight. As such, I tend to look at the world through the optics of mathematics. For this reason, I have never understood why people believe that they can model financial markets: they're clearly far too complex/chaotic to be reduced to any equation, and trying to extrapolate with computers - no matter how powerful - is just doomed to failure.
And so it seems:
I hear many Risk Arb players at big shops are getting creamed. It seemed like you make money for 3 years, then give it all back in a couple weeks. Classic mode-mean trade: mode is positive, mean is zero.
Posted by
Glyn Moody
at
8:07 am
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Labels: chaos, finance, horoscopes, maths, mean, mode, shares, stars
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