Yes…today’s “deep thinking” piece is about mathematical modeling.
But the really good news is that we will use hardly any mathematical terminology. Other than some of the most basic functions anyone acquainted with Excel (and clones) can already deal with.
Because we are in the “great hunter” mode – trying to spot the tracks of the elusive Profit Beast.
Considering how much dough Wall Street firms have poured in over the years, this may seem like a hopeless endeavor. Yet, we operate from the premise that it’s often possible to find useful trading adjuncts because so many people of high mathematical ability are plagued by a peculiar type of schotoma. One that keeps the apparent hidden in plain sight.
So we calculate and speculate, but not until we caffeinate and hypothecate about trading the period ahead..