Don Philip Faithful's Blog – September 2018 Archive (4)

Letting the Market Do the Managing

For some organizations the title might not be too meaningful, but it is meant to emphasize a conceptual point.  The managers in an organization do the managing.  They do this at least theoretically by managing resources – including people.  Then in the end, if fortune is smiling, the markets will adhere to the game plan, and the company will succeed.  However, companies routinely fail, creating products and services that the markets don’t care to purchase.  They sometimes use methods…


Added by Don Philip Faithful on September 29, 2018 at 10:33am — No Comments

Applying Noise Reduction to Stock Market Data

I don’t believe the issue of stock market noise has received much attention from professionals in the investment industry.  I am uncertain if it is much of a topic even among traders.  It certainly wouldn’t be unusual for noise to be discussed among data scientists.  Consider the implications of the suggestion that some trading days provide better guidance than other days – and that analysts should be focused on days that contain less “noise.”  The quality of one’s guidance becomes…


Added by Don Philip Faithful on September 22, 2018 at 10:18am — No Comments

Wrongness of the Nogs

Recently, I encountered the mystery of a stock trading algorithm that habitually makes the wrong investment decision.  It is usually wrong 55 to 60 percent of the time.  This algorithm makes use of simulated traders – usually a thousand of them.  Each trader is triggered to do buy and sell orders using a purely technical approach – that is to say, by analyzing the price.  I call the simulated traders that make money “the Nogs.”  By definition, all of the Nogs are winners. …


Added by Don Philip Faithful on September 15, 2018 at 7:49am — No Comments

Designing Data-oriented Processes

An important part of my job - which I don't recall ever learning in school - is designing data-oriented processes. I can program in a number of computer programs. Writing a computer program certainly involves designing a process. Many people have the experience of being at a line-up - perhaps at an airport or cashier. At some point, somebody designed that line premised on how people would be processed. A web designer might create an online registration system for students that wish to enroll…


Added by Don Philip Faithful on September 12, 2018 at 6:22am — No Comments

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