Juro
Well-known member
Thanks for the kind words, everyone. Good to know that I'm not just doing this for myself… :slight_smile:
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@Gary Bakerloo said:Juro,
The measure of robustness of any stochastic model is its ability to best capture the expected range of outcomes. In finance, many questioned how stochastic models did not capture the severe left tail event of the GFC. The key issue was that many models underestimated the impact of irrational decision making by investors either through either exhuberance (over buying) or depression (over selling). Many models have now attempted to capture these elements of behavioral finance.
Which brings us to your model. Have you attempted to build in the expected impact of having complete and utter morons running the front office of the club?