Mac Murray

Cybernetic Trading Systems

In DEEP Investing, INTELLIGENT Investor on January 4, 2011 at 2:59 PM

“Cybernetics was defined by Wiener as ‘the science of control and communication, in the animal and the machine’—in a word, as the art of steermanship.”

–W. Ross Ashby


Cybernetics embodies a multi-discipline theoretical framework which focuses on goal-directed systems.  These systems use information, models, and control actions to steer towards and maintain a predefined objective while attempting to counteract anything which detracts from this objective.

Perhaps the most fundamental innovation of cybernetics is its explanation of purposiveness, or goal-directed behavior.

Cybernetics and Fund Management

“Goal-directed behavior” is particularly critical in the world of investment management.


On Modern Finance Theory: It Pays to Ignore Your Professors

In DEEP Investing on December 12, 2009 at 3:10 PM

"So, theoretically if I had any money, here's how I would invest it..."

When it comes to wading through the tsunami of academic contributions to Modern Finance (or the fund and banking destruction left in its wake) I cling tightly to the maxim be careful who you listen to.*

Mind you, there are a number of academics I greatly admire for their analytical prowess and explanatory power with regards to the present and past financial crises, for instance  Richard Epstein of the Hoover Institution, Martin Feldstein of Harvard, Simon Johnson and Ricardo Caballero of MIT.

However having something meaningful to say about the national or global economy is one thing; having a clue about generating competitive returns amidst the harsh realities of investment management is another thing altogether.

The #1 Sign You Are Likely to Blow Up Your Trading Account

In MYTHS & Markets on December 2, 2009 at 12:47 PM

“What’s the hot stock?”

“Have you heard any rumors?”

“What are you buying?”

“What’s your top pick?”Questionable Questions

“Got any tips?”

“What are you looking at?”


The question comes in different flavors.  But I’ve heard it oh so many times that out of desperation I recently came up with a carefully crafted, now well-rehearsed response: