SURFERS RIDE ON COMPUTER RATIOS
A message to the harassed foreign exchange dealer: let the computer
take the strain.
When psychological and political pressures send markets into a
spin, the computer can add a calming influence through its absence both
of emotion and procrastination. It trades with the same cool
objectivity, irrespective of whether it is sitting on a fortune or
adding to a string of losses.
The approach is simple. It will provide a humble mathematical
analysis of the markets, and will not attempt to make any forecast. It
will not try to catch tops or bottoms but will deliberately miss both to
concentrate on following the trend. Instead of taking profits quickly
and delaying the recognition of losses, the computer recommends taking a
loss quickly but letting a profit run.
A mathematical analysis of the market is based on the observation
that fluctuations in currency rates display...
