Re:Training Rats as Traders
by steveplace on Saturday March 14, 2009 @04:30PM
(#516147)
He assigned pitches to how fast the market was moving, and trained the rats on those pitches. The speed of the market can be measured using averages.
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Obviously a positive return cannot be made from moving averages. But how do you know that the rats don't develop some sort of intuition that can make a positive return?
Re:Training Rats as Traders
by steveplace on Sunday March 15, 2009 @06:11PM
(#517311)
First, moving averages do play a role in some (profitable) quant systems.
Second, I never said that the rats couldn't create a positive return, but you could model the rats behavior quantitatively and develop a system, but that's just bringing it back full circle.