System Design | NOV 2003
Casino Trading by Phil Abel
Casino Trading by Phil Abel The Monte Carlo simulation, a statistical technique used to model the expected outcomes of a random series of events such as a casino game, also has valuable applications in the evaluation of a systematic trading program. When you think of a successful trader, what comes to mind? Chances are you conjure up the image of a financial sage like Warren Buffett or George Soros, someone who can seemingly gaze into a crystal ball and pick out a winner. Or maybe you picture a commodity pit trader, hardened and wizened from days spent in battle on the exchange floor. Now what if I told you a successful trader might have the most in common with a casino manager? How can the proud and noble trader possibly lower his self-image to equate it with that of a gambling house? Indeed, the word gambling has a most negative reputation.
by Phil Abel
Technical Analysis of STOCKS & COMMODITIES
The Traders’ Magazine since 1982
has had over 1,226,237 subscribers from 174 different countries.
37,000 Page Traders’ Archive for $89.99
To continue reading, sign-up for trial access to Traders.com and the S&C Archive — 37,000 pages of trading ideas!
After verifying your email address, you will have limited access to the S&C Archive, as well as access to a Digital Edition of S&C, and access to Traders.com Advantage and Working Money for 30 days.
Not a subscriber to Technical Analysis of
STOCKS & COMMODITIES magazine?
Click
here to subscribe, or request
a trial subscription.
Log-in now to view articles from the S&C Archive.
Your Subscriber ID is located at the top of your magazine label, highlighted here in red.
Your last name can be found on the second line, highlighted here in blue.
*If you have a company name on the label, that can also be used. It will appear below your name on the label.
If you do not have a Subscriber ID on your label, you can find it on your statement or renewal form.
For help locating your Subscriber ID number, please call us at 1-800-832-4642 or send an email to Survey@Traders.com. If sending an email, please include your name and mailing address.