May

29

Nobody Asked Me But…from Victor Niederhoffer

May 29, 2009 |

9 Comments so far

1. douglas roberts dimick on May 30, 2009 3:21 am

   Hawkens on Brains a la Intelligence: Not Behavior but Prediction Based on High-Dimension Patterns and Recall-Sequencing

   I reflect upon decades of articles and commentary ad nauseam equating markets with behavior. I too based years of research on the fated (cause and effect) dynamics relative to market behavior when developing the Theory of Quantitative Relativity (or QR).  Jeff Hawkins presents a glimpse of how we are naturally disposed to predict. See…

   http://www.ted.com/talks/jeff_hawkins_on_how_brain_science_will_change_computing.html

   […]

   Whereas quant-algo constructs are predictive as derived from data based within a computation framework, QR theory then substitutes math with memory (or state) components for recall and sequencing. Key to distinguishing quantitative from rules-based governance of systematics is to understand the physics of electronic market exchanges. This statement means that, instead of order execution protocol predicated on issue and market externals, alternate state-input-output processing becomes organized via state-input-state (or state transition) combination and sequential declaration and excitation.

   Victor often refers us to game analogies. Games are rules-based constructs, which offer multi-dimensional levels of participation yet requires linear (insider/outside) governance to establish and maintain (dis)functional codification of standards and practices for purposes of fairness and order (or regulation).

   […]

2. Rocky Humbert on May 30, 2009 11:46 am

   RDR:

   Reading your comment, I feel like I was just attending a lecture and the professor said something that was very profound and important; but it went right over my head.

   Perhaps you could give a simple example of "alternate state-input-output processing becomes organized via state-input-state (or state transition) combination and sequential declaration and excitation."

   Thank you.

3. Jim Davis on May 30, 2009 10:10 pm

   Is there anyone that does not understand that a move , such as we had late on Friday, is very likely preplanned?

   By who is the question, and one could speculate but it would not do you much good to know.

   The volume profile (ES futures, a very good measure of such things) became quite abnormal after the morning rush, with next to nothing trading after 11:30. In fact, the last 1/2 hour volume was nearly equal to all contracts traded between 11:30 and 3:30 EST. Thus the huge and one way move.

   End of month, end of week, end of whatever, it smacks of something prepared in advance, like a horse , held for a few races and then juiced and let loose to run full out.

4. douglas roberts dimick on May 31, 2009 1:06 am

   Rocky, I apologize for writing obtuse. Proprietary issues of my eight years of work make it so.

   […]

   I wrote the referenced working draft of my second book project (How You Win The Currencies Wars) during the last three weeks of January. It is my attempt to outline key aspects of my research leading to my Theory of Quantitative Relativity. At the table of contents, you will see references that you can follow, explore, connect, and perhaps so expand.

   […]

5. Hans on May 31, 2009 8:06 am

   Douglas,

   Me too, would appreciate a real life example of your thoughts…

   thx
   Hans

6. Rocky Humbert on May 31, 2009 9:25 pm

   DRD:I genuinely appreciate your response.That said, the brilliance of people such as Carl Sagan, Richard Feynman and Stephen Hawking included not only their ability to think great thoughts, but their ability to communicate their thoughts — without corrupting them — in ways that non-physicists can comprehend, appreciate and be in awe of.Your words: "patterns become statistical domains, whereby classes may be defined as conditions precedent of rules-based protocols for order execution programming " seems to me to be eerily remininscent of Kabbalah. As I suspect most Daily Spec readers understand exactly your points, I readily and humbly confess that our "failure to communicate" is most likely due to (my) well-documented mental defects.

7. douglas roberts dimick on June 1, 2009 4:16 am

   Rocky, I am certain here that the "failure to communicate” is my inability due to proprietary concerns and not your mental health. […]

8. vic niederhoffer on June 1, 2009 7:42 am

   I believe all Daily Spec readers feel like Mr. Rocky and could much appreciate an example as to the practical application of a theory without in any way giving away the mojo of it. vic

9. Anton Johnson on June 1, 2009 8:54 am

   DRD - I appreciate you sharing discrete pieces of research developed during your eight-year journey. Perhaps obfuscation is a result of a desire to protect the proprietary nature of your research; however I implore for a concise, discipline non-specific elucidation that allows for a more widespread conveyance of your complex ideas.