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Search: Posts Made By: Fat Tails
Forum: Psychology and Money Management February 10th, 2015, 05:33 PM
Replies: 98
Views: 33,787
Posted By Fat Tails
Yes, thinking can be painful. This thread is full...

Yes, thinking can be painful. This thread is full of thoughts. :sarcastic:

https://nexusfi.com/attachment.php?attachmentid=174537
Forum: Psychology and Money Management May 24th, 2012, 01:58 AM
Replies: 98
Views: 33,787
Posted By Fat Tails
Fat Tails would be the result of positive...

Fat Tails would be the result of positive auto-correlation of price. You could also exploit negative auto-correlation of logarithmic returns. What cannot be exploited, is no auto-correlation at all,...
Forum: Psychology and Money Management May 18th, 2012, 05:23 AM
Replies: 98
Views: 33,787
Posted By Fat Tails
Not at all off-topic. I fully agree. If the...

Not at all off-topic. I fully agree.

If the financial markets did behave like a coin flip scenario, there would be no point trading at all. You would simply engage in a random walk.
Forum: Psychology and Money Management May 17th, 2012, 06:39 AM
Replies: 98
Views: 33,787
Posted By Fat Tails
I am just fighting the idea of progressive betting

I just went through the pain of explaining this to show that progressive betting is not possible, if there is no correlation between consecutive bets.

Progressive betting works for card games, as...
Forum: Psychology and Money Management May 16th, 2012, 07:52 PM
Replies: 98
Views: 33,787
Posted By Fat Tails
This thread is about a coin toss experiment. ...

This thread is about a coin toss experiment.

You cannot push your chances above or below 50% with a coin toss experiment.

It is impossible.


If you want to find an edge in trading, you...
Forum: Psychology and Money Management May 16th, 2012, 07:43 PM
Replies: 98
Views: 33,787
Posted By Fat Tails
The Gambler's Fallacy Again

You are still falling prey to the Gambler's Fallacy.

The point is that you look at the day with the 5 winners and the 5 losers with hindsight. If you cut your size back after the first loser, than...
Forum: Psychology and Money Management May 16th, 2012, 02:41 PM
Replies: 98
Views: 33,787
Posted By Fat Tails
In my judgement, you are a victim to the...

In my judgement, you are a victim to the Gambler's Fallacy.

A priori, that is prior to betting, there is no such thing as a winning or losing run. You will only notoce them with hindsight. If you...
Forum: Psychology and Money Management May 16th, 2012, 09:20 AM
Replies: 98
Views: 33,787
Posted By Fat Tails
This is the old question of progressive betting...

This is the old question of progressive betting systems. Progressive betting implies that the outcome of the current bet somehow depends on the outcome of the previous bets.

If you have a card...
Forum: Psychology and Money Management May 3rd, 2012, 05:18 PM
Replies: 98
Views: 33,787
Posted By Fat Tails
DavidHP: I agree, the strategy has no edge, the...

DavidHP: I agree, the strategy has no edge, the only theoretically possible edge would have been that the profit target is further away than the stop, if there was auto-correlation. But this effect...
Forum: Psychology and Money Management May 3rd, 2012, 03:39 PM
Replies: 98
Views: 33,787
Posted By Fat Tails
I am sorry, I can see a lot of confusion. Let us...

I am sorry, I can see a lot of confusion. Let us have a look at the strategy again. You enter a position at random, then you set a profit target of 5 ticks another profit target at 10 ticks and a...
Forum: Psychology and Money Management May 3rd, 2012, 08:34 AM
Replies: 98
Views: 33,787
Posted By Fat Tails
It is indeed simple, but even simple things need...

It is indeed simple, but even simple things need to be understood.


:hehehe:


I know that I can be mean, but it is my vocation to stop all varieties of nonsense.

The experiment cannot have...
Showing results 1 to 11 of 11

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