Ep. 1069: Algos, Negotiation, Meditations with Michael Covel on Trend Following Radio
Michael Covel's Trend Following
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The Structure of an Optimal Stopping Problem
Many aspects of the financial world are implicitly modeled using optimal stopping under the hood. If you buy, then you can't reverse that without some pain, right? But also if you fail to act, then the opportunity may go away and you don't have the opportunity to rectify that also. In fact, there are optimal algorithms for this version of the problem too, which is known as recall.
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