I was glad to hear that the "Flash Crash" was not caused by the guy who invented the internet, but rather by a step-by-step recursive computational procedure for solving a problem in a finite number of steps...ALGORITHM. Say it fast and you won't get confused like I did.
By definition the CMI 2.0 is an algorithm too:
1. check market
2. buy with the trend
3. collect $
4. GOTO step 1
One of the jungle dwellers, Will H, recently reminded me of a quote by Albert Einstein...
"Make everything as simple as possible, but not simpler." I couldn't agree more although I have the tendency to violate the "not simpler" part of that quote. This comes to mind because as I refine the Cheetum Market Indicator, less steps and indicators used seem to result in a higher percentage of good signals. To mis-quote another genius, "Simple is as simple does."
Since I had a hard time understanding how an "Al Gore Rhythm" could melt down the market, and then, while writing this post, it took several attempts to spell 'algorithm', I'll leave you with this National Spelling Bee moment...
You can almost see the light bulb flicker above this kid's head.
Friday, October 1, 2010
Al Gore Rhythm?
Labels:
Cheetum Method