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• The Pseudo Trader by Mark Harris

  ARTICLE SYNOPSIS ...The Pseudo Trader by Mark Harris How can you model stocks without stocks? By using random numbers to drive the simulation. In previous articles (STOCKS & COMMODITIES, December 1990 and January 1991), first I demonstrated the modeling of stock charts using this technique and then the modeling of a stock specialist. The problem I encountered was that the model lacked feedback -- while volume influenced price (via the actions of the pseudo specialist), the reverse did not hold. What happens when the loop is closed by adding an object that responds to price? I call this new Smalltalk object a ""t...

AUTHOR: Mark HarrisDATE: MAR 1991

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• Random System, Loss Control? by Mark Harris

  ARTICLE SYNOPSIS ...Random System, Loss Control? by Mark Harris In his Settlement column in the January 1991 issue of STOCKS & COMMODITIES (""Trading simply: Minimizing losses""), Technical Editor John Sweeney says, ""I haven't tested a random set of rules yet, but I wouldn't be surprised if they worked given good loss control."" I thought it might be interesting to check out a very random system with a certain degree of loss control. I'm hedging on this a bit because the system I've set up literally only gives a degree of control over losses. The basic idea of the system is as follows: On some randomly chosen ...

AUTHOR: Mark HarrisDATE: JUL 1991

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• Pseudo Stocks by Mark Harris

  ARTICLE SYNOPSIS ...Pseudo Stocks by Mark Harris The stocks charted in Figure 1 look for all the world like typical charts you might find in a chartbook. I have added a few uptrend and downtrend lines and shown how 52 (in the upper chart) seems to provide long-term resistance, then support, and in the latter stages resistance again. I can't tell you what stocks these are, because they aren't charts of real stocks: the charts were generated by my computer along with thousands of others. They are shown as a family here because they all possess common statistical characteristics. Some years ago I became interested...

AUTHOR: Mark HarrisDATE: JAN 1991

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• Pseudo-Stock Specialist by Mark Harris

  ARTICLE SYNOPSIS ...Pseudo-Stock Specialist by Mark Harris In ""Pseudo Stocks,"" STOCKS & COMMODITIES, December 1990, I showed some stock charts from a random number generator resembling real life to an astonishing degree and some simple rules for price transitions. Now, I would like to model a ""specialist."" This will add volume to the charts and, additionally, we can see which situations are good or bad for our hypothetical market maker. As a disclaimer, let me state right at the outset that I haven't a clue how a real-life specialist goes about making a market for the stocks in which he specializes, how he ...

AUTHOR: Mark HarrisDATE: FEB 1991