Randomness, from Leo Jia

October 1, 2014 |

One lesson I am taking from the following article is that randomness is the safest and least damaging method after a series of losses. Of course it is better to have a strategy with an edge. But when you feel threatened or defeated any known strategies could take on a negative edge, so it is better to go random, which always has a zero edge that is better than a negative one. Species seem to have learned this through evolutions.

One other lesson perhaps is that randomness is a great mind opener if one is mindful enough. It is said that failure is an opportunity to learn, so maybe this lesson teaches us that randomness is the door to success.

"Strategic or Random? How the Brain Chooses":

Many of the choices we make are informed by experiences we've had in the past. But occasionally we're better off abandoning those lessons and exploring a new situation unfettered by past experiences. Scientists have shown that the brain can temporarily disconnect information about past experience from decision-making circuits, thereby triggering random behavior.

In the study, rats playing a game for a food reward usually acted strategically, but switched to random behavior when they confronted a particularly unpredictable and hard-to-beat competitor."

anonymous writes: 

An interesting thought that reminds me of modeling the Genetic Algorythm process. Throw in a random factor that ends up improving the search results.





Speak your mind

3 Comments so far

  1. Andre Wallin on October 3, 2014 8:50 am

    Random comment on western psychology

    We channel our ego into activity and we are naturally inclined to do so. However, due to technology, we have created more free time for ourselves. When we are disengaged in an activity we come face to face with our ego. We then have time to think of our death and in some senses the death of the world because without the perceiver there is no world and no objects. This is the fundamental driver of human nature. Norman Brown speaks extensively of this in his book Life Against Death. Also, why we have an extreme emotional need for religion and a belief in an afterlife.

  2. Charalampos on October 3, 2014 4:12 pm

    Hello dear All, and mr Victor, this link is safe(http://www.tradeitdontdateit.com/live/) so please spend some time, once a wile to check, how this guy is trading, i was watching what he does for months,

    So he uses one chart and just switches the time frames all day, to find some levels, that he thinks is important for markets, he proved that he is not demo( on one of the videos he showed that account is real) trader, for example this weak profits above 700000 usd on es 500, can we discuss this, i was to much involved in looking for more education in trading, trying to learn statistics,programming to find edge, but this person is trading from one chart,(he live streams real time his trades, for free, just because it is to boring to be a lone and trade,
    Don,t you think there is some big underestimation to simple approach, and practice, without putting your brain to complex math, is the best way, or at least this way is not way for fools.i did a lot of reading trading trying different thing, and this simple approach is amazing, is it more about talent??? than just being good at regression lines?? and inter market co-movements and so on……. I really want to have some discussions about this, if i am able? to any readers of this blog it will be very important aspect i think, i know that mr Vic opinion about trading just out of charts is not possible, and we can not compete, with such way, but this person does it and believe me i watched for log period, he is very flexible in his opinion, he can change his position, he can reverse his position,add to it, scale in scale out, So again can we have little conversation all together.
    Thank you,
    With love from Cyprus,

  3. Anonymous on October 5, 2014 2:59 pm

    sitting out still seems the best option to me


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