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On Fri, 15 Dec 2000 10:39:08 -0800, you wrote:
>>If there is a rather flat optimal area in an optimization function, then
>>the optimal area is rather large. If there is a large optimal area (i.e.
>>large market imperfection), then it would be identified easily by many
>>market actors, and it would no longer exist.<
>
>Not if you are the only one optimizing that system.
Its not "the system" that counts, but "the market" behind (and
represented by) the system. And this market is open for many actors,
at least since internet days.
>I'm assuming "flat" here means the method works similarly well across a wide
>range of parameter inputs. Are you saying that's a bad thing? To me it would
>seem to indicate a more robust system.
"Flat optima" imo are mostly "wishful thinking" or even can be
"simulated" by a trading system, when it represents only a _small
extract_ of the real (much more complex) market.
So, if we relay on TA, probability distribution of (wins and) losses
imo is the most reliable concept to "avoid peaks".
mfg rudolf stricker
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