Comments on: Applying Parrando’s paradox to the stock market http://www.uglychart.com/2007/12/02/applying-parrandos-paradox-to-the-stock-market/ Beauty is in the eye of the shareholder Thu, 08 Jan 2009 00:11:04 +0000 http://wordpress.org/?v=2.6.1 By: Ugly http://www.uglychart.com/2007/12/02/applying-parrandos-paradox-to-the-stock-market/#comment-35249 Ugly Tue, 04 Dec 2007 00:25:45 +0000 http://www.uglychart.com/2007/12/02/applying-parrandos-paradox-to-the-stock-market/#comment-35249 richard: yeah, that's what I was thinking bradley: interesting, could there also be a pattern-failing-failing strategy? upitik & tyro: it sounds interesting, but I agree that it doesn't seem so useful richard: yeah, that’s what I was thinking
bradley: interesting, could there also be a pattern-failing-failing strategy?
upitik & tyro: it sounds interesting, but I agree that it doesn’t seem so useful

]]> By: Tyro http://www.uglychart.com/2007/12/02/applying-parrandos-paradox-to-the-stock-market/#comment-35248 Tyro Tue, 04 Dec 2007 00:12:51 +0000 http://www.uglychart.com/2007/12/02/applying-parrandos-paradox-to-the-stock-market/#comment-35248 Parrando's paradox relies on participants knowing exactly what the probabilities are for every game played. If you can do that in the market, you won't need to bother constructing portfolios like this in such a bizarre way. Basically, it's an interesting mathematical oddity but it doesn't have any practical application in the markets that I can imagine. Parrando’s paradox relies on participants knowing exactly what the probabilities are for every game played. If you can do that in the market, you won’t need to bother constructing portfolios like this in such a bizarre way.

Basically, it’s an interesting mathematical oddity but it doesn’t have any practical application in the markets that I can imagine.

]]> By: uptik2000 http://www.uglychart.com/2007/12/02/applying-parrandos-paradox-to-the-stock-market/#comment-35243 uptik2000 Mon, 03 Dec 2007 14:58:38 +0000 http://www.uglychart.com/2007/12/02/applying-parrandos-paradox-to-the-stock-market/#comment-35243 Geez....there were many times early in my trading career where I had two losing accounts and I haven't seen a penny of profits from those..lol. Seriously though, sounds interesting. Geez….there were many times early in my trading career where I had two losing accounts and I haven’t seen a penny of profits from those..lol. Seriously though, sounds interesting.

]]> By: Bradley http://www.uglychart.com/2007/12/02/applying-parrandos-paradox-to-the-stock-market/#comment-35237 Bradley Mon, 03 Dec 2007 05:54:58 +0000 http://www.uglychart.com/2007/12/02/applying-parrandos-paradox-to-the-stock-market/#comment-35237 You can do it in the stock market - it's called pattern failure! When a pattern sets up, and fails, that's usually the safest entry in the opposite direction. So trading breakouts and fading breakouts are 2 strategies which conflict, but if you fade the breakouts only after the breakout fails, you can be quite successful. At least that's my trading system. You can do it in the stock market - it’s called pattern failure! When a pattern sets up, and fails, that’s usually the safest entry in the opposite direction. So trading breakouts and fading breakouts are 2 strategies which conflict, but if you fade the breakouts only after the breakout fails, you can be quite successful. At least that’s my trading system.

]]> By: Richard http://www.uglychart.com/2007/12/02/applying-parrandos-paradox-to-the-stock-market/#comment-35232 Richard Mon, 03 Dec 2007 04:29:29 +0000 http://www.uglychart.com/2007/12/02/applying-parrandos-paradox-to-the-stock-market/#comment-35232 I looked at this last year. The thing that's not well advertised is, game B is a two part game. And, while B overall is losing, one part of game B must be a winning game AND you have to be able to choose to play in that winning portion of B whenever you want. Soo... if you found a way to pull off the paradox in the markets, you might as well just forego that and play the winning side of game B all the time. It wouldn't illustrate a neat paradox if you did that, but it will be better for your equity curve! I looked at this last year. The thing that’s not well advertised is, game B is a two part game. And, while B overall is losing, one part of game B must be a winning game AND you have to be able to choose to play in that winning portion of B whenever you want. Soo… if you found a way to pull off the paradox in the markets, you might as well just forego that and play the winning side of game B all the time. It wouldn’t illustrate a neat paradox if you did that, but it will be better for your equity curve!

]]>