The Trading Tribe

Ed Seykota's FAQ
Home | Send Mail to FAQ | Resources | Ground Rules | FAQ Index

Epidemic Lab

Contributors Say Ed Says
October 5, 2022

TT Lab for Price Discovery

Hi Mr. Seykota,

Very insightful simulation to get a better understand of patterns!

Could you share more info about the simulation algo behind this?

I want to simulate a situation of more and more momentum / trend traders coming in as the price goes up, instead of fixed number of trend traders.

Thanks, best regards,

Thank you for running the model.

The math follows the basic form for an elementary multivibrator.

The buying pressure from Trend Traders increases as their perception of up-trend strength increases.

Trend Traders React to Rising Prices:
Price --> Trend Perception --> Buy Pressure

Value Traders React to Rising Prices
Price --> Relative Value --> Sell Pressure
October 4, 2022



[A friend] generously recommended that I read your book.  Just wanted to say thank you, that it really resonates with so many things things I knew made no sense but I didn't have a framework to connect them. 

I didn't know that Friedman's "pencil" arguement for free market capitalism wasn't original, that Leonard Read's "I, Pencil" preceded his presentation. 

Have readers tried to use Triffen's Paradox to poke a hole into or identify a missing element in your Assimilation Model?

Looking forward to reading further into your amazing book.  It has more than lived up to the hype - I quickly understood why [my friend] insisted I read your book. 


Andrew Rosenberg
Triffen's Paradox, like much of Keynesian "Economics" follows from the desire to justify central banking and enable deficit spending.

If you replace the central bank with the Gold Standard and regional banks, you also replace inflation and moral hazard and with stability and prosperity.

The Assimilation Model incorporates a central bank as a necessary element to the generation of inflation.

So far, I don't seem to notice any Triffen Holes in my model.
October 4, 2022

Politics of Science

Hi Ed,

This reminds me of you and Bernouli.

best regards,
Thank you for sending me the link.
To Top of Page