Mac Murray

Author Archive

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


CYBERNETIC TRADE CONTROL SYSTEMS

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. Read the rest of this entry »

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“Your average broker couldn’t be a trader in a million years.” Michael Marcus, Market Wizard

In MYTHS & Markets on January 4, 2011 at 2:41 PM

MARKET WIZARDS

Ouch.  You’re killin’ me Marcus.

So who is this guy?  And why would he have the audacity to say this?

Read the rest of this entry »

PSE Inks Pact with the Department of Education

In PSE CURRENT Affairs on January 2, 2011 at 6:37 PM
PSE Inks Pact with DepEd

PSE Inks Pact with DepEd

In a thrust to further develop the Philippine capital market and enhance students’ financial literacy, the Philippine Stock Exchange (PSE) has teamed up with the Department of Education (DepEd) to pursue the integration of topics about the capital markets in secondary education.

Read the rest of this entry »

The ASEAN Trading Link Revolution is Coming

In INTELLIGENT Investor, PSE CURRENT Affairs on January 1, 2011 at 3:49 PM

ASEAN Trading Link countries: Singapore, Thailand, Malaysia, Indonesia, Vietnam and the Philippines

The long-awaited ASEAN Trading Link may do more to stimulate both investment in the Philippines and Filipino investing than any other current development.

According to the PSE Info Matrix a Memorandum of Understanding was signed earlier in the year between the exchanges of the Philippines, Malaysia, Singapore, Indonesia and Thailand. Within twelve months, investors based in any of these countries will be able to buy stocks on the index of any participating ASEAN exchange, just as easily as purchasing at their home exchange. Read the rest of this entry »

The Intelligent Investor

In DEEP Investing on January 1, 2011 at 1:15 AM
Benjamin Graham

Benjamin Graham

Chinese Blue Marble Half Slice

“Smart investors look to the market not as a guide for what to do but as a creator of opportunity.”

–Benjamin Graham

Chinese Blue Marble Half Slice

Read the rest of this entry »

Vanguard’s Quant Disaster

In INTELLIGENT Investor on May 5, 2010 at 11:02 AM

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John Bogle help us.

Vanguard Group Inc., the largest U.S. provider of stock and bond funds, is deciding whether to keep Axa Rosenberg Group as manager for about $1.5 billion of its assets, after that firm said a “coding error” disrupted its quantitative investment process.

“We’re taking a very hard look at that relationship, but we’re still in fact-finding mode,” Rebecca Katz, a spokeswoman for Valley Forge, Pennsylvania-based Vanguard, said in a telephone interview. Read the rest of this entry »

Client Confidentiality and Non-Disclosure

In INTELLIGENT Investor, RISK Management on March 22, 2010 at 11:33 AM

INVEST PHILIPPINES strives to provide excellence in professional service to its clients.

The purpose of collecting data from clients is in order to provide professional fiduciary services.

E. M. Murray observes a strict code of ethics and maintains a policy of strict confidentiality of all personal data submitted by clients whether by mail, email, fax or through information provided via consultation. Read the rest of this entry »

Trading Systems and Methods by Perry Kaufman

In BOOK Review, DEEP Investing on February 21, 2010 at 11:38 PM

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RECOMMENDED.

Not for wimps, the lazy, or the faint-of-heart.

Perhaps the most widely quoted work by industry professionals.

Awesome in every sense of the word.

High Probability Trading by Marcel Link

In BOOK Review, DEEP Investing on February 21, 2010 at 11:29 PM

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RECOMMENDED

Interesting insights from a pre-high frequency prop trading perspective.

This is a totally different angle from your typical retail trading experience.

Mechanical Trading Systems by Richard Weissman

In BOOK Review, DEEP Investing on February 21, 2010 at 11:18 PM

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RECOMMENDED.

“The greatest benefit of mechanical trading systems is their ability to reprogram traders away from destructive types of behavior in favor of successful trading habits.”

–Richard Weissman

Perhaps W. Edwards Deming said it best: “If you can’t describe what you are doing as a process, you don’t know what you’re doing.”

I can count on one hand the number of traders I’ve met on the Philippine Stock Exchange trading floor who can describe every facet of their trading as a process.  True, some veterans can kick butt trading ‘by their gut’ but they are few.  I suspect the majority let their emotional state or whims of the moment play a inappropriately large role in putting on trades.

If you’re serious about your trading, you’ll systematize what you’re doing.