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Chapter Thirteen
Louis Mendelsohn:
No Market's an Island; Mendelsohn's "Method behind the Madness" |
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Louis B. Mendelsohn is President and CEO of Market Technologies Corporation. His work in neural networks is gaining the attention of Chicago traders. |
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Neal: How do you think financial markets are different now from the last decade? |
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Louis: During the past decade, the financial markets have undergone an irreversible global integration. Whereas previously isolated from one another, they now function within a highly interconnected context. Now it is necessary for serious futures traders to factor intermarket dynamics into their trading decision-making. Traders who continue to focus internally on only one market at a time (single-market analysis), oblivious to the intermarket effects that related markets have on that market, are in my opinion putting themselves at undue risk. |
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It's no longer adequate to simply follow buy/sell signals generated from single-market trading systems. Such approaches, widely advocated in the 1980s and still popular today, fail to allow for individual differences in risk propensity, account capitalization, trading styles, and objectives. I now believe that such approaches are too inflexible and rigid. |
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