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.
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