Market Curiosity: Exploring Markets And Systems

December 12, 2010

Gems from Fred Brook’s design of design

Filed under: Systems — Jeff Fitzmyers @ 1:44 pm

Wired article:

You can learn more from failure than success. In failure you’re forced to find out what part did not work. But in success you can believe everything you did was great, when in fact some parts may not have worked at all. Failure forces you to face reality.

Trading losses can be looked on as a refining process rather than, “I suck”.

The critical thing about the design process is to identify your scarcest resource. Despite what you may think, that very often is not money.

What is scarce about trading? Lots of software, lots of opinions, lots of money, lots of stocks… Very little sanity: Many people have not designed a system that works for them. And many of the ones that do, supposedly spend 90% of their effort on entries and almost zero effort on exits.

… constant incremental iteration is a far sounder approach [rather than big rollouts].

When learning, take small positions and keep trying.

[advice?] Design, design, and design; and seek knowledgeable criticism.

The markets give instant feedback — one of the best learning tools ever!

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