Hi
Pal,
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.
Have a
nice weekend.
--N!!
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