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yeah but the key is how to do quantify fear and greed? ;-)
for a trader who's long fear is "sell" and greed and "no sell"
for a trader who's short fear is "buy" and greed is "no buy"
you can quantify "no sell" as synthetic buy and
"no buy" as as synthetic sell...
both emotions cause action or no action...
action no action means what???
all comes down to "buy" or "sell" one way or the other...
bilo.
ps. again, a good system is where trader psychology is quantified...
----- Original Message -----
From: "Thomas Alexander" <alexander_enterprises@xxxxxxxxx>
To: "Omega List" <omega-list@xxxxxxxxxx>
Sent: Tuesday, June 12, 2001 7:04 PM
Subject: Systems and Psychology
> I hear a lot here about price distributions, system
> characteristics and their shifting modalities. On the other
> hand, doesn't the basic psychology of market participants
> remain fairly constant over time? Certainly their tools
> improve but their (our) fear and greed does not change
> much. I would imagine that as a trader becomes more mature
> in the market that they enter different levels of
> psychology till they become "professional." But, there is
> always a new influx of beginners to take their place, the
> 80% losers.
>
> So, do any of the systems in the Futures magazine top 10
> list capture that non-shifting psychology or are they all
> shallow mathematical/predictave price distribution engines?
> Any "psychology based" systems out there for comparison?
>
>
>
> rudolf stricker
> wrote: On Mon, 11 Jun 2001 15:39:21 -0400, you wrote:>-
> 60% or higher>- 1 to 1 or higher......>the rest of the
> stats will come from the 60% and 1 to 1...More general, the
> "rules" above come down to "which criterions to useto
> select a system", e.g. in a goal function during
> systemoptimization Over the last years, I ended up with the
> following:- number of trades/year- profit- number of
> winning / number of loosing trades- win/ loss ratio- max
> win- in rate- tail volume of the loss distributionAll these
> criterios (weighted over time and condensed to
> onecriterion) turned out to be necessary for me, to select
> a system whichis profitable _and_ is comfortable for me.mfg
> rudolf stricker| Disclaimer: The views of this user are
> strictly his own.
>
>
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