> Or you could just invest in index funds.

:D :D :D  You really made me laugh with that comment (given the context).
That is generally a piece of good advice.


On Sun, Aug 11, 2019 at 11:05 PM Devon McCormick <[email protected]> wrote:

> Or you could just invest in index funds.
>
> On Sun, Aug 11, 2019 at 6:17 PM Raul Miller <[email protected]> wrote:
>
> > On Fri, Aug 9, 2019 at 7:22 PM Jose Mario Quintana
> > <[email protected]> wrote:
> > > :D  I was even quoting from the paper.
> >
> > You get a gold star.
> >
> > But how can I talk about what the paper says with you, when you are
> > not acknowledging that it was said?
> >
> > > "the paper relied on no such idea" and "it's also not proposing 'a
> > trading
> > > strategy which beats the market'."
> > >
> > > That is too bad then because according to the paper,
> > >
> > > "On the contrary, finding those remaining profitable strategies would
> be
> > a
> > > paramount goal for many practitioners."
> > >
> > > So, I guess, practitioners look elsewhere!  (Are we reading the same
> > paper?)
> >
> > We are.
> >
> > You're quoting from the motivations and definitions part of the paper.
> >
> > > "since the only use of the word 'beat' in the paper was a sentence
> > > talking about two horses."
> > >
> > > You used the phrase "the market can't be beat." earlier in this thread
> > > (remember?) and, for instance, Wikipedia uses "beat the market" in the
> > > context of the EMH; instead you can think of, consistently producing
> > > risk-adjusted excess returns, if that makes it easier for you (because
> > you
> > > cannot possibly be suggesting that the paper uses its own peculiar
> > > independent definition of the EMH; that would explain a lot though).
> >
> > Yes, I did. But what was I using the phrase to say?
> >
> > > "But we need to make one other assumption that is currently not
> standard
> > in
> > > modern markets: we need to allow participants to place
> > order-cancels-order
> > > (“OCO”) or one-or-the-other orders. These are orders on different
> > > securities that automatically cancel the remaining orders whenever one
> is
> > > hit."
> > >
> > > Can you name any market where you can place these orders or are they
> > still
> > > in La La Land?
> >
> > If that is "La La Land" then you are emphasizing functioning markets
> > being heavily regulated.
> >
> > Which would be accurate, by the way, though different countries
> > regulate them in different ways.
> >
> > > The paper just claims "markets are probably not efficient;" but you go
> > > further "even weak form market efficiency seems highly implausible."
> > What
> > > do you mean by "highly implausible"?  Where exactly in the paper is the
> > > evidence that supports your claim?  (Can you at least mention the
> > section?)
> >
> > That's a mix of the argument made in that paper with my observations
> > on how things typically work.
> >
> > You're right that that's not something the paper says.
> >
> > But a better way of expressing my point of view is this:
> >
> > If we constrain ourselves to literal interpretations of the various
> > published forms of the efficient market hypothesis, and limit
> > ourselves to statement which are observably correct, then it's very
> > difficult, and perhaps impossible, to find anything useful in what it
> > says, except as a rough heuristic describing some properties of
> > existing market regulations.
> >
> > Thanks,
> >
> > --
> > Raul
> > ----------------------------------------------------------------------
> > For information about J forums see http://www.jsoftware.com/forums.htm
> >
>
>
> --
>
> Devon McCormick, CFA
>
> Quantitative Consultant
> ----------------------------------------------------------------------
> For information about J forums see http://www.jsoftware.com/forums.htm
>
----------------------------------------------------------------------
For information about J forums see http://www.jsoftware.com/forums.htm

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