July 11, 2018

Uncertainty

One of the major concerns in stock trading strategy design is future price uncertainty. Unsure of about everything as to what is to come. As if unable to make assured predictions on what might or might not happen next. If it was not like that, you would be sure and ready to play that game every day of the week. Call it fun and lucrative.

The more randomness there is in stock price series, the more difficult it is to consistently extract predictable profits. As if the predictions were mere coincidences or luck

Everything needs to be consistent within its described “boxed” universe. As if the unexpected, outliers, remain unpredictable even if we know they might be coming. It is by having a better understanding of quasi-randomness at the edge of random-like price series that we might, in fact, be able to extract a positive edge.

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Basic Portfolio Math VI

Related Files:

Basic Portfolio Math I

Basic Portfolio Math II

Basic Portfolio Math III

Basic Portfolio Math IV

Basic Portfolio Math V

Trading a Buy & Hold Strategy


 Created...July 11,  2018, © Guy R. Fleury. All rights reserved.