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Search: Posts Made By: Fat Tails
Forum: Off-Topic April 3rd, 2011, 10:22 AM
Replies: 56
Views: 13,448
Posted By Fat Tails
I think that many events are random, and even...

I think that many events are random, and even with all the knowledge of the world it is not possible to predict them.

Of course, you can debate whether the random events are deterministic in the...
Forum: Off-Topic December 13th, 2010, 09:17 AM
Replies: 56
Views: 13,448
Posted By Fat Tails
Futures are a zero sum game, so the aggregate...

Futures are a zero sum game, so the aggregate profit of noise, fundamentally oriented and feedback traders is zero before commissions. It is a sucker's game.



The game is designed that way...
Forum: Off-Topic December 12th, 2010, 04:41 PM
Replies: 56
Views: 13,448
Posted By Fat Tails
I agree with this. In the absence of external...

I agree with this. In the absence of external causes, such as unexpected news, sideways action can be

- either the result of random movements (noise traders)
- or the result of positive...
Forum: Off-Topic December 12th, 2010, 02:47 PM
Replies: 56
Views: 13,448
Posted By Fat Tails
Positive feedback reinforces a price move and...

Positive feedback reinforces a price move and creates additional momentum. Trend following creates additional momentum in the direction of the prevailing trend.

Negative feedback slows a price...
Forum: Off-Topic December 12th, 2010, 08:03 AM
Replies: 56
Views: 13,448
Posted By Fat Tails
For the coin flip, there is absolutely no...

For the coin flip, there is absolutely no connection between the 57th and the 58th coin flip. The 58th coin flip is stochastically independent from all prior coin flips. This is the main point to...
Forum: Off-Topic December 7th, 2010, 10:36 AM
Replies: 56
Views: 13,448
Posted By Fat Tails
Yes, if you build a chart with a random series,...

Yes, if you build a chart with a random series, there will be trends as well. These trends are just meaningless, but they exist.

The only way to detect whether a trend is random or not, is to...
Forum: Off-Topic December 6th, 2010, 06:28 AM
Replies: 56
Views: 13,448
Posted By Fat Tails
If there is feedback involved, it cannot be...

If there is feedback involved, it cannot be random. You would make the distinction between two cases

(1) Usually noise traders enter trades in a random way. Each trader may have a reason, but the...
Forum: Off-Topic December 5th, 2010, 09:12 PM
Replies: 56
Views: 13,448
Posted By Fat Tails
Thinking in Conditional Probabilities Just...

Thinking in Conditional Probabilities

Just prior to the first flip the probability for the chain

tails -> tails -> tails -> tails -> tails -> tails -> tails -> tails -> tails -> heads

is...
Forum: Off-Topic October 31st, 2010, 08:17 PM
Replies: 56
Views: 13,448
Posted By Fat Tails
Glad you liked it, just copied it from Wikipedia....

Glad you liked it, just copied it from Wikipedia. But with your coding capabilities you should not pretend to be impressed by some basic math. :nerd:
Forum: Off-Topic October 31st, 2010, 05:47 PM
Replies: 56
Views: 13,448
Posted By Fat Tails
Haven't read it yet, might do so. It looks like a...

Haven't read it yet, might do so. It looks like a controversial, but interesting book. Scientific discovery is not yet over, it just shifts to other places. Sometimes, I have the feeling that in...
Forum: Off-Topic October 31st, 2010, 05:04 PM
Replies: 56
Views: 13,448
Posted By Fat Tails
The idea of Gauss distributions (bell curves) is...

The idea of Gauss distributions (bell curves) is just a model. It heavily relies on the efficient market hypothesis, which assumes that there are noise traders and arbs. Whenever a noisetrader makes...
Forum: Off-Topic October 31st, 2010, 06:48 AM
Replies: 56
Views: 13,448
Posted By Fat Tails
If you flip your coin 100 times, one event would...

If you flip your coin 100 times, one event would be any result describing the 100 coin flips such as (heads, tails, tails, tails .... , heads, tails). Each single event has a probability of (1/2)^100...
Showing results 1 to 12 of 12

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