Jim Simons

The advantage scientists bring into the game is less their mathematical or computational skills than their ability to think scientifically. They are less likely to accept an apparent winning strategy that might be a mere statistical fluke.Jim Simons President Renaissance Technologies


A Discussion of ‘Dips’

You do not know how low the low can go.

William Eckhardt: The Man Who Launched 1,000 Systems

All credit to www.futuresmag.com/Issues/2011/March-2011/Pages/William-Eckhardt-.aspx?page=1

Futures Magazine: Many in the traditional investment world cling to the notion that markets are efficient. Trend-following is not valid under the efficient market hypothesis (EMH) but here you are 30 years later. Why has the EMH persisted? Talk about this anomaly.

Bill Eckhardt: The random walk model of price change has been so durable because it’s nearly correct. The difference between futures prices and certain random walks is too small to detect using traditional time series analysis. Incredibly, this difference is detectable using trading systems.


Smart v. Intelligent

Intelligence tends to refer to raw brain power, for example IQ.

Smart tends to refer to the application of intelligence e.g. an ability to successfully analyse a situation, to adapt, to use the intelligence quickly and appropriately.

In Praise of Solitude and Creativity

All credit to www.nytimes.com/2012/01/15/opinion/sunday/the-rise-of-the-new-groupthink.html?_r=1

“Research strongly suggests that people are more creative when they enjoy privacy and freedom from interruption. And the most spectacularly creative people in many fields are often introverted, according to studies by Mihaly Csikszentmihalyi and Gregory Feist. They’re extroverted enough to exchange and advance ideas, but see themselves as independent and individualistic. They’re not joiners by nature…. (more…)