The optimal allocation based on the historical data, then should we use this for the future? I think only the future behavior can produce the allocation for the future, especially at the moment when those three stocks have totally different movements compared to historical records. That's why I really don't understand the meaning of modern allocation technology.
Hi Pak. What you have to remember is that at the time we make decisions, and take action we only have the past to look at. We don't yet have the future! So by performing re-calculations of the key metrics regularly in order to determine the nature of the markets at the time we make decisions is the only way.
@@aGiantLu Hi Pak. Sounds interesting. Could you provide some more detail around what you mean please? I'd be interested in considering further, Martyn
The optimal allocation based on the historical data, then should we use this for the future? I think only the future behavior can produce the allocation for the future, especially at the moment when those three stocks have totally different movements compared to historical records. That's why I really don't understand the meaning of modern allocation technology.
Hi Pak. What you have to remember is that at the time we make decisions, and take action we only have the past to look at. We don't yet have the future! So by performing re-calculations of the key metrics regularly in order to determine the nature of the markets at the time we make decisions is the only way.
@@TradeLikeAMachine how about adjusting the optimal allocation algorithms using predictions under some uncertainties?
@@aGiantLu Hi Pak. Sounds interesting. Could you provide some more detail around what you mean please? I'd be interested in considering further, Martyn