From theory to practice - page 1976

 
Доктор:

Well, if the Baum-Welch mathematical algorithm for estimating the hidden Markov model is resetting people's shell of mathematicians, then so be it.))

Mathematics has a life of its own and markets have a life of their own. Why should markets obey mathematics or physics? If there are other laws for them.

 
Доктор:

Well if the Baum-Welch mathematical algorithm for estimating the hidden Markov model is resetting people's shell of mathematicians, then so be it.)))

Own an insider's knowledge of the algorithms used at Renaissance Technologies?)

 
Uladzimir Izerski:

Mathematics has a life of its own, but markets have a life of their own. Why should markets obey mathematics or physics? If there are other laws for them.

Here you are definitely wrong. Mathematics does not have a life of its own. It is the science of learning the patterns of the world around us, including market patterns. And it is not markets that obey mathematics, it is mathematics that cognizes markets. This is againa truism.

 
Aleksey Nikolayev:

Own an insider's knowledge of the algorithms used by Renaissance Technologies)?

The world is transparent. Everything is in the public domain.

 
Доктор:

Well, if the Baum-Welch mathematical algorithm for estimating the hidden Markov model is resetting people's shell of mathematicians, then so be it)))

hmmm... quite interesting

reading

 
Доктор:

Here you are definitely wrong. Mathematics does not have a life of its own. It is the science of learning the patterns of the world around us, including market patterns. And it is not markets that obey mathematics, it is mathematics that cognizes markets. This isa truism again.

I'm not even arguing about whether the egg or the chicken is primary).

The point is that having a knowledge of mathematics does not give a great advantage in trading en masse. Mathematicians don't like to multiply by zero, it comes to them.)

 
Renat Akhtyamov:

Hmmm... quite interesting.

reading

ok, ok.

the Baum-Welch algorithm figure is like this, but Y as supposedly modified into X presented to us is obtained with some probability


what is true here is that Y(t) is the state of the previous and subsequent Y

with Y(t-1) being previous, Y(t+1) being leading and Y(t) current,

conclusions:

probability exclude!

we need Y(t) === X(t) , i.e. with probability equal to 1
 
Renat Akhtyamov:

So that's normal.

the pattern of the algorithm is like this, but Y is obtained with some probability.


Conclusion: exclude probability!

and it turns out like mine:


Beautiful.

 
Uladzimir Izerski:

Beautiful. ++

made it, huh?

;)))

 
Uladzimir Izerski:

Having knowledge of mathematics does not give the masses a great advantage in trading.

Knowledge alone does not add money to the wallet. A fishing rod in a cupboard won't feed your supper.

Reason: