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by Traden4Alpha
September 23rd, 2006, 10:42 pm
Forum: Technical Forum
Topic: Covered Calls for asset management
Replies: 30
Views: 97842

Covered Calls for asset management

<t>QuoteOriginally posted by: nazzdackYou guys are starting to "abuse" the strategy. What's wrong with abuse if it adds profit?QuoteOriginally posted by: nazzdack(1) If you're capable enough to anticipate pullbacks in a stock, you should sell the stock and/or short-sell it. Otherwise, you might have...
by Traden4Alpha
September 23rd, 2006, 12:36 pm
Forum: General Forum
Topic: The Housing Market
Replies: 61
Views: 105764

The Housing Market

<t>That's a good read. I can think of a couple more points that should make for much more volatile but ultimately moderated drop in housing prices in the U.S.:1. Flippers left Holding the Bag: 23% of homes bought in the U.S. in 2005 where "for investment purposes." Technically, most of these "invest...
by Traden4Alpha
September 22nd, 2006, 11:47 pm
Forum: Student Forum
Topic: CAPM TESTS
Replies: 10
Views: 92571

CAPM TESTS

<t>Andrew Lo said (I doubt he was the first person that said) that "economics advances one funeral at a time." I'm sure that many attempted tests of CAPM that yielded negative results were rejected for publication. And that other published falsifications of CAPM were met with by howls of quibbles, r...
by Traden4Alpha
September 22nd, 2006, 7:25 pm
Forum: Off Topic
Topic: Is my whiskey killing me?
Replies: 46
Views: 94165

Is my whiskey killing me?

<t>You might want to get a blood assay for liver function. It will tell you a) whether you've already damaged things and b) provide a baseline for future tests. The problem with "recommended maximum doses" of alcohol or anything else is that it assume everyone is average. But there's enough genetic ...
by Traden4Alpha
September 22nd, 2006, 3:08 pm
Forum: Technical Forum
Topic: Covered Calls for asset management
Replies: 30
Views: 97842

Covered Calls for asset management

<t>QuoteOriginally posted by: ppauperQuoteOriginally posted by: Traden4Alpha In a downward trending market, a covered call is fine, although the premium you get from selling the call may be quite small.and that's the point of a covered call, is it not ?you think there's going to be a short-term pull...
by Traden4Alpha
September 22nd, 2006, 2:36 pm
Forum: Student Forum
Topic: Real option problem (?)
Replies: 3
Views: 91956

Real option problem (?)

<t>"Training of B employees" is probably more a cost for B than for A unless A is paying the wages of B's employees during training (unlikely). Also, what stops A from selling the same services to C, D, and E at any point in time to amortize the IT and new business stream hiring? (Should A being pay...
by Traden4Alpha
September 22nd, 2006, 12:43 pm
Forum: Technical Forum
Topic: Covered Calls for asset management
Replies: 30
Views: 97842

Covered Calls for asset management

<t>The total payoff of a covered call is capped by the strike. If the underlying moves upward above the strike, the option holder will exercise the call and insist that you sell your position to them for the strike price. In an upward trending market, you lose the upside with the covered call. In a ...
by Traden4Alpha
September 21st, 2006, 11:31 pm
Forum: Programming and Software Forum
Topic: A good reason for optimization ;-)
Replies: 13
Views: 93386

A good reason for optimization ;-)

<t>QuoteOriginally posted by: stuntprogrammerGoddamit need a domain expert to aid in nailing down the reqs.. and access to some real world example apps would help immensely.Something tells me that the true killer app here is in algorithmic trading, not just data crunching. Taking an msec off the pro...
by Traden4Alpha
September 21st, 2006, 9:22 pm
Forum: Student Forum
Topic: cycle
Replies: 4
Views: 92202

cycle

<t>What you want is a bit tricky because you are looking for nonstationary cyclic phenomena. Standard Fourier analysis assumes that fixed frequency sinusoids span the entire time series, not start and stop over a few cycles. Also Fourier works best with sinuisoidal waveforms. If the waveform is more...
by Traden4Alpha
September 21st, 2006, 2:41 pm
Forum: Brainteaser Forum
Topic: An open question on finance: arbritrage self regulating property
Replies: 9
Views: 93075

An open question on finance: arbritrage self regulating property

<t>QuoteOriginally posted by: twofishQuoteOriginally posted by: Traden4Alpha And even if the physical resources are bounded, you can still have an unbounded economy through growing efficiency and multiplier effects. Especially in a world of fiat money, the size of the economic pie isn't limited. If ...
by Traden4Alpha
September 21st, 2006, 12:41 pm
Forum: Brainteaser Forum
Topic: An open question on finance: arbritrage self regulating property
Replies: 9
Views: 93075

An open question on finance: arbritrage self regulating property

<t>I'm reminded of two examples from the artificial life literature on this one. The first one concerned an early simulation of some artificial creatures that were supposed to evolve strategies for finding food in a simulated world. The simulation levied a one energy unit cost for motion. But the pr...
by Traden4Alpha
September 21st, 2006, 12:41 am
Forum: Programming and Software Forum
Topic: A good reason for optimization ;-)
Replies: 13
Views: 93386

A good reason for optimization ;-)

<r>QuoteOriginally posted by: stuntprogrammerI don't see the need to have the UI on the applicance, nor to move anyone from their familar UIs. In fact, I'd see huge value in letting people point their web browser or excel at it. OK, I can see that we don't need a UI if all the appliance is doing is ...
by Traden4Alpha
September 20th, 2006, 9:57 pm
Forum: Programming and Software Forum
Topic: A good reason for optimization ;-)
Replies: 13
Views: 93386

A good reason for optimization ;-)

<t>QuoteOriginally posted by: stuntprogrammerIt strikes me that there's a good opportunity there for a startup to produce a trading system applicance that pulls out all the stops to minimize latency. Tick data analysis server, fix plugins and written to the metal software.Interesting idea! The big c...
by Traden4Alpha
September 20th, 2006, 8:28 pm
Forum: Programming and Software Forum
Topic: A good reason for optimization ;-)
Replies: 13
Views: 93386

A good reason for optimization ;-)

<t>QuoteOriginally posted by: stuntprogrammerYeah but asics are a pain in the ass. Design and verification costs as well as fab costs. Sure its within their budget but I think there is probably an awful lot one could do on mainstream hardware.Yes, ASICs are a pain. And the minute the market changes ...
by Traden4Alpha
September 20th, 2006, 6:46 pm
Forum: Programming and Software Forum
Topic: A good reason for optimization ;-)
Replies: 13
Views: 93386

A good reason for optimization ;-)

<t>With a $100 million/year of new revenues (and assuming $10 million in profits) on the line, I'm surprised the investment bank doesn't look into creating its own ASICs (application-specific integrated circuits). I'm sure someone would gladly make an ASIC that takes a raw exchange feed, subdivides ...