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In a message dated 9/8/99 12:19:55 PM Pacific Daylight Time, allan@xxxxxxxx
writes:
<<
However, in finance, the distributions are frequently found to be
"fat-tailed." So the assumption for trading is questionable.
It's similar to the way linearity assumptions are frequently used for
analysis. The math is easy but the applicability to real-life may not be
there.
>>
The "fat tails" means there is profit potential in trend-following.
Chuck
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