rss

Do markets move in the shape of a torus

Do markets move in the shape of a torus, which is at the heart of the constructal principle more frequently than chance, and is it predictive?

When you say “torus” I think “circle times circle”. (Referring to the surface of the torus, not a solid torus.)

The surface of a sphere, by contrast, is not circle times circle. (The standard physical models are: two angular measurements in a TIE fighter, versus lat/long measurements on the Globe. (Think about the poles and notice that lat is 180 degrees, not 360.))

From an external point of view the surface of a torus is a 2-dimensional curved surface with one hole in it.

(more…)

On Being the Right Size

I found this 1926 paper “On Being the Right Size” by J. B. S. Haldane quite fascinating.

To the mouse and any smaller animal it presents practically no dangers. You can drop a mouse down a thousand-yard mine shaft; and, on arriving at the bottom it gets a slight shock and walks away, provided that the ground is fairly soft. A rat is killed, a man is broken, a horse splashes.

That reminds me of Billy Eckhardt’s comments on bet size…

If you plot system performance against bet size, you obtain a curve in the shape of a rightward-facing cartoon whale, going up in a straight line before dropping dramatically.

He said: “Trading size is one aspect you don’t want to optimize: the optimum comes just before the precipice. You want to be at the left of the optimal point, in the high zone of the straight curve.” (more…)

Go to top