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Re: Trading System Design



PureBytes Links

Trading Reference Links

Thomas Alexander <alexander_enterprises@xxxxxxxxx> writes:
>What I would like to know is, what are GA and NN referring to?

Ok I'll take this one... :)

GA: Genetic Algorithm; an environment where the software can
"evolve" its way toward a solution to some problem.  Proponents
have countered dismissive remarks such as "...but you wouldn't
want to fly on a plane designed that way" with "I wouldn't
want to fly on a plane that WASN'T designed that way."

NN: Neural Network: simulation of synaptic connection architecture
of the brain, that can be "trained" to recognize the solution to
a problem.

>And as far as I can tell, Easylanguage is a standard
>linear programming language by definition, as compared to
>object oriented or some of the various embedded AI language
>variants. Did I miss something? Does Easylanguage have
>"variants?" What's the "standard linear programming"
>reference apply to?

Linear Programming: a mathematical construct, often "linear algebra,"
that allows many input variables to solve for some number of outputs.
If you have fewer outputs than inputs, and the relational functions
among them are all independant, and linear, you can find a unique
solution.

The temptation to apply cutting-edge mathematical/engineering
techniques to trading is hard to resist.  For a good survey
see: Deboeck: "Trading on the Edge."  For another interesting
viewpoint on the mental side of it, try: Kahneman et al:
"Judgment under uncertainty: Heuristics and biases."

The land baron down the road, who made his wealth in the markets
once remarked, "engineers make the worst traders."  I like to
think of myself as a recovering engineer... :)

Have fun!

Jim