BIG DATA Raul said: >> > >> That said, for practical reasons (even ignoring regulations) it's not > >> possible to extract all meaning from historical data.
The meaning of life? >>> “Well, it's nothing very special. Try and be nice to people, avoid eating >>> fat, read <https://www.moviequotes.com/topic/reading/> a good book every >>> now and then, get some walking in, and try and live together in peace and >>> harmony with people of all creeds and nations >>> <https://www.moviequotes.com/topic/nation/>.” > >> This is > >> especially true in high monetary velocity contexts. There isn't enough > >> time to perform more than superficial calculations. HFT is falling off because once they overtook most of the market there wasn’t money to be made through high speed trades. Fama says prices reflect all information (variously: available, relevant, WF historic prices or prices and volume, SSF history + news, SF history, news and private information. Saying that in an efficient market prices “fully reflect” available information is so vague that can’t be empirically tested. There is a comparative advantage conferred by differences in information held by competing investors. Information that is universally available cannot provide the basis for profitable trading rules. > Fidelity Investments has quietly built up a team of nearly 140 data geeks. > "Between the dawn of civilization and 2003, we only created five exabytes; > now we're creating that amount every two days. By 2020, that figure is > predicted to sit at 53 zettabytes (53 trillion gigabytes) -- an increase of > 50 times. Google’s CEO, Eric Schmidt Of course 78% of all statistics are made up—and you know 78% is made up because it should follow the 80/20 rule > It would be ideal if we could have an uncontrolled flow of information. - > Poindexter, former Director of DARPA Information Awareness Office The key is what information is actually relevant to assists decision makers—how much value can be derived from the information, how much cost is there to finding the information where it lives and how much does it cost to use it—do we even need it? > ...in 1946 at a conference held at… CalTech... A complex object, he > conjectured, is such that the simplest model that can be given is itself. The > information it contains is incompressible. > > It is interesting that von Neumann resorted to an example borrowed from > economic theory to illustrate his point. The text von Neumann chose is > Vilfredo Pareto’s Manual of Political Economy (1906). In it, Pareto explains > that the model of general economic equilibrium, developed with Leon Walras, > is a model that formalises the mechanism of the formation of price in a > competitive market: Not in the least to arrive at a numerical computation of > prices…. ...if all these equations could really be known, the only humanly > possible way to solve them would be to observe the practical solution brought > about by the market. > ---------------------------------------------------------------------- For information about J forums see http://www.jsoftware.com/forums.htm
