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Strategies & Market Trends : Waiting for the big Kahuna -- Ignore unavailable to you. Want to Upgrade?

To: Real Man who wrote (56767)	2/18/2002 5:48:38 PM
From: Moominoid	Respond to of 94695

Yup the Levy stuff is in Mandelbrot's 1982 book that I have. All the components are in there. But as a simple economist I find the math a little hard going :) Need to check on Amazon and see - I think he published a finance book in 1997 maybe that is geared to explaining it to economists. The paradox is that technical analysis is possible by fitting the wrong model to the data! That's what Mandelbrot and the finance guys don't realize. If you actually fractionally difference the data etc, you then remove all the structure and get back to a Levy or whatever white noise. You can predict by assuming it is an ARMA Gaussian model or whatever when it isn't! David

To: Real Man who wrote (56767)	2/18/2002 6:05:00 PM
From: Moominoid	Read Replies (2) \| Respond to of 94695

Here is Mandelbrot's finance book: amazon.com Apparently some classic finance papers by him and some new material. David