On Sun, Sep 15, 2019 at 1:01 PM Jose Mario Quintana
<[email protected]> wrote:
> Raul wrote:
> > Let's say we've got a relatively small expression, with only 50
> > variables. And, let's say we express that in terms of SAT-3, with
>
> So, are you afraid that an actual market could solve the example that the
> author was entertaining and one would have to go to 50 variables?

Are you being sarcastic?

But, no, instead I assumed that the author's 2 order example was meant
to illustrate the mechanisms behind his statement:

"In other words, the market allows us to compute in polynomial time
the solution to an arbitrary 3-SAT problem."

And, I was assuming that his example was not meant to be the entirety
of what he was trying to say.

That, and I was also trying to illustrate one of the reasons why I
thought current regulations would not permit the solution of arbitrary
3-SAT problems.

> > You made the claim that what you call "circuit breaker" regulations
>
> Do I call them that?  Did you read the link that you posted?  It starts as,
>
> 17 CFR ยง 242.201 - Circuit breaker.

I see no contradiction here.

(But if you are asking if I also did not see that title? Yes, sadly, I
did not see that title when I was reading the text of that
regulation.)

> > > No?  Then hurry up, program the market and run it, executing suitable
> > > OCO orders as necessary, before the restless regulators storm TD's
> > > facilities and shut down their WebBroker platform,
> >
> > This suggests to me that you also did not understand the reasoning
> > expressed in the paper.
>
> This suggests to me that you might have just a tiny little bit of
> difficulty detecting sarcasm.

Indeed.

Sarcasm (and other forms of insincerity) are considerably more
difficult to recognize in text than in person.

> After reciting a litany of arguments apparently you have convinced yourself
> that this is a la-la market programming.  Congratulations!

I see no contradiction here. Then again, this roughly approximates my
starting point of view about EMH. I believe "lala land" is a perfectly
adequate way of characterizing all forms of the EMH.

> > In other words, so far, the alleged strong or semi-strong inefficiency
> > *might* only be falsified in Lala Land.

Are you being sarcastic?

> > It does suggest that EMH would have [la-la] implications about the
> > nature of [la-la] trading. But its central argument is that is the [la-la]
> > market were [la-la] efficient that we could [la-la] expect the [la-la]
> > market to [la-la] have [la-la] problem solving  properties which it
> > [la-la] doesn't [or la-la does] have.

That's a bit silly, but then so are the various EMH hypotheses...

Thanks,


--
Raul
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