Monday, October 24, 2005

Watch List for week of 10-24-05

My software didn't come up with anything I'm interested in putting money on this week. Most of the bases it showed me did not look very mature. Here are the highlights:



I saw IBD featured an interview with Ray Kurzweil on pages A4 and A5 of this weekend's paper. I've mentioned Ray Kurzweil frequently on this blog. Most recently was in September when I wrote about the role of accelerating technology in the area of risk management. I almost jumped out of my seat when I read this paragraph from IBD's interview with Ray because of his own remark on risk management:

  • The interneural connections [of humans] do computations at about 200 calculations per second, which is a million times slower than electronics. And there are many ways human intelligence gets easily confused, like in understanding risk. We can create nonbiological systems that are thousands of millions times faster, and we'll be able to combine our strength of human intelligence, which is principally our pattern recognition.


This is already going on. My own stock trading strategy is a synthesis of machine strengths and my own strengths. I feel that I've reached the point where it is easier to improve the machine side than improve my own assessment abilities so I have been focusing the bulk of my efforts on that for the past few months. I have been developing in java a suite of tools for scanning and manipulating price data, technical indicators, backtesting, and statistical extrapolations from the backtesting. Eventually my plan is to let the machine take over my trading in derivatives and forex almost completely. I still plan to do discretionary trading of common stocks as a way of diversifying, and because it is pretty fun too =D

3 Comments:

At 7:58 PM, Blogger Gordengekko said...

John-

looks like stockcharts does not have PYG listed. This is a very thin.
Some of the other charts are interesting as usual.

Gekko

 
At 8:37 PM, Blogger jontait said...

GG,

Thanks for catching that. It was supposed to be PYX. I have corrected it in the post above. I copy the chart links by hand when I make these blog posts, so that is the reason for the error.

-Jon

 
At 10:01 PM, Blogger Gordengekko said...

PYX will report earnings on Oct. 27th. I rarely hold through earnings as a general rule.

Gekko

 

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