8.12.19

Review: Foucault's Pendulum

Foucault's Pendulum Foucault's Pendulum by Umberto Eco
My rating: 5 of 5 stars

This book changed my life. When I read it, I was playing around with a neural net, a kind of logical "black box" that can find patterns. Of course I was trying to predict the price movement of stocks. After literally hundreds of minor adjustments to my model, I got a stock predictor that actually worked. I traded it based on the indicators once and made some quick money. But then a lesson from Foucault's Pendulum started nagging me, the talk about the laundry list. (view spoiler)I decided to stop working with the black box, although I think I could have used it further, and possibly made a lot of money trading or writing about it. I had started to believe the story the black box "proved". At least I quit while I was ahead! Although I kinda wished I hadn't... BTW, I was predicting ERTS using CPQ (the former Compaq) and DELL as proxies for the market over trades between one and ten days. Back in the mid 90s. On a 386 using one bootable diskette.

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