Jul

14

 In the spirit of broadening horizons within the aegis of a selfish profit motive, this site discusses concepts that are extraneous to the financial markets that just may have some applicability to one's daily speculations.

Of the many posts on this site that I have observed and participated in, topics can be classified broadly into two genera:

1. Motivational, general, commonsensical et. al.
2. Potentially quantifiable and directly applicable.

I will focus on type 2.

For one's own part, the allometry of trees, seismic activity and gravitational effects of heavenly bodies are my three favorites (nemeses!).

All involve non linear relations between at least two quantities that take account of magnitude, time and force or gravity.

The real problem with using the mathematics from many of these areas is that the relationships in the real world (ex markets) are often much more stable and less prone to 1 in a trillion shots like 1/15/15.

Also, the problem of units. Gravity is one in particular where units (m/s ^2) is hard to transfer.

A discussion on conversion of units, stability of distributions and alteration of some of the more formulaic aspects is apropos.

For one's own part, the most intellectually compelling extra-market relationships involve gravity and allometry but the dual directional nature of the two forces involved in seismic activity seem most applicable.

In all honesty though, making the jump from a compelling description of events to satisfactory prediction thereof remains elusive from these three areas of toil.


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