Archive for November, 2012

Now and then everybody needs a conceptual framework. Our conceptual framework is different from the link above. Here is the outline of a system that can help in stock market decisions. One of best way to illustrate a concept is the Flow Chart that usually tells the viewer the flow of information or sequential steps. […]


A brief addendum to the Part 1.   Can the volatility drag quantified by the simulation that was performed in the previous post? Let’s construct the toy SPY model in a way that the Expected %change is a positive constant every day, but very, very close to zero. (For example = 0.00001) A naive observer […]


A long time ago MarketSci had some strategies called Scotty and YK. These strategies are currently retired, but audited performance result can be obtained from here and here. There were ‘by and large’ daily MR strategies. To be honest, that is a crude simplification, because YK  was a learning algorithm, but because daily MR was very […]