My previous article was a
general view and for a literary audience nor was it a research paper though i
have done quite a lot of lateral thinking on the subject.The word exponential
should be taken in a literary sense and in tune with the general flow of the
article and can be replaced by "Phenomenal"if you wish.
The real reason for writing
the article was that after using the brilliant capabilities of amibroker and
rigourous testing of most of the indicators and systems designed on this group
by equally brilliant people and also designed elsewhere in mags and other
trading platforms i did form a tentative conclusion that mathematics being an
exact science becomes a handicap on many trading occasions.The indicator usage
and backtesting facilities of amibroker also makes amibroker a sort of exact
science as you come to know the capacities and limitations of the system you
have designed for your trading activities.The attenuation of the system to
increase your trading efficiency and profits by using mathematical formulae
also has its limitations and the final squeeze in profits comes down to the
risk / reward factor.Looking at maximum drawdowns and the profits by automation
gives one a stark view of how much you can expect from your trading activity
and also the limits of maths and formulae designed at further attempts to
maximise profits results in an exponential increase in "a hundreadth of
decimals" and not integers and also results in an increase in risk.
I would like to apply the exact science to know about the holy grail as an
interested party in this business of investing .I have come across this grail
on numerous occasions as a holy grail system ,holy grail indicator,holy grail
trading platform,or just simply the holy grail.The exact characteristics of the
grail are missing and the main aim of most investors on any trading platform
seems to be to hunt for the holy grail. A search of the Bible, which i believed
would give me some sort of clue the grail being holy, by a google search from page
to page on various different copies on different websites did not give me any
mention of the holy grail and i think nowhere is the grail mentioned in the
bible.
Ayn Rand as like all
the rest has just made a mention of the holy grail in her novels.Nowhere has
she defined it.Her books were published in the late fifties and as of date i
have never yet come across any living being who has lived up to her primary
characters either in the methods of creating wealth or in her brand of
capitalism.My personal opinion is that she has put far too much faith in the
goodness of man and her books are hyped more on hope and dreams for
mankind and a utopian world than on reality.(The closest she came to
reality was in "The virtue of selfishness").
I found these
statistics on a website called warrenbuffettsecrets: In 47 years,
Buffett’s investment company, Berkshire Hathaway has achieved returns of
259,485% versus the S&P 500 returns of 4,783%. The difference in results is
an astonishing 254,747%!
Thats the main
reason i responded to the holy grail question asked by Mr Davis under this
subject . Does the holygrail connote unlimited riches beyond the dreams of
avarice.Are these riches in monetary terms or living in a castle or in some
luxurious villa in tahiti as was mentioned by some on this group or is it
simply a new way of life or something else and what is the price to be paid for
it.Do we after attaining it become a king Midas who finally turned his
daughter into gold.Newtons laws say for every action there is an equal and
opposite reaction .Is that reaction sleepless nights, big drawdowns,loss in
reputation or is it some of what is mentioned above. I would be interested if
someone finds out what is exactly meant by the holy grail.Any website,
book,pamplet giving formation or any investors personal opinions.I mean we are
all after the grail.
Meanwhile i am back to using the
exact sciences for my trading activities.
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