Maths is not the key to trading


8,655 981
In terms of money management Maths is critical and much of trading success comes from how well money is managed.



341 0
I do not mean that area of money managment. If that gives you a critical point of entry/exit on any trade then i would like it off you. PeeDee.


Veteren member
4,106 11
are you talking to me or Paul ?

I went to the trouble some years ago of actually programming Mr
Hursts theories to see if they worked in practical trading terms.
Apart from an interesting exercise in sine wave mathematics
and a great deal of fun playing with different cycle waves it has
sat unused. Like all systems youwill eventually get a signal that
coincides with a turn in the market. But there is considerable lag
so it is only of academic interest unless you are an institutional
trader and you are investing other peoples money on a buy and
hold strategy.

Just can't bring myself round to the idea of scrapping it.


341 0
You said it yourself, it has sat unused. The question is, did you make any profit from the sine waves maths, if so, well good, keep going. Who knows when the next cycle is to be. Cheers bonsai, PeeDee.


Veteren member
4,106 11
plenty of "cycles" in the market but do they coincide with sine wave phases is the issue.
and if so why?

I suspect it's one of those systems that would only work if
a critical mass of traders used it. And as they wont.


Veteren member
4,106 11
"The Profit Magic of Stock Transaction Timing" by J.M Hurst.

The author reports on a price forecasting technique that predicts price turns with 90% accuracy ... produces an average profit of 10% per month....and proves your stockmarket fortune can be built like clockwork.

I picked it up in a shopping mall on the way to Newark airport.
Thought it might be a good laugh to read on the plane.
And it was.

Cost all of $7.95 but it was some years ago.

However in fairness to the guy, there were one or two good ideas
about moving averages as well.



Senior member
2,560 22
Jeepers creepers. When did they build an airport at Newark?

There's and old castle and quite a nice market and shops but an airport!



Junior member
15 0

Black, Scholes & Merton showed that mathematics plays quite a significant role in trading, don't you agree?


Veteren member
4,106 11
that's a nicely ambiguous question.
should be interesting to see what replies you get.

what do you mean by 'significant' and
what do you mean by 'trading'

and of course there is always a time frame to consider.


Experienced member
1,076 39
yes,those guys were such great mathmaticicans and risk managers they bankrupted LTCM and nearly collapsed the entire market
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