Book Review – Beat the Market: A Scientific Stock Market System

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The book offers step-by-step instructions, with explanatory, charts and tables, whereby anyone with 2000.00$ brokerage account can conduct his own investment program. Details are given of actual investments made by the authors, one of whom more then doubled $100,000 in five years.

This book also serves as a curious filter rule. Those who read this and understand the old world and Thorp’s method most likely can see current methods and models and break them down and differentiate them into tractable and fantasy. Credit structures who’ve relied on standard cash-flow and default probability metrics would have done well to start with Thorp to see how what they construct can be de-constructed by clever boots who see both the strengths of the original construct, and the copula methods and correlation assumptions in the structure (and its decay) to make arbitrage opportunities. In other words; if they read Thorp and “get it” they have a lower likelihood of being hoodwinked going forward.

Beat the Market: A Scientific Stock Market System

About Authors

Sheen T. Kassouf (1929-2006[1]) was an economist known for research in financial mathematics. Kassouf received a PhD in Economics from Columbia University (1965) and was later Professor of Economics at University of California Irvine. Together with Edward O. Thorp he wrote the book Beat the Market in 1967. [wp_ad_camp_1]

Edward Oakley Thorp (born August 14, 1932, Chicago) is an American mathematics professor, author, hedge fund manager, and blackjack player. He was a pioneer in modern applications of probability theory, including the harnessing of very small correlations for reliable financial gain.

Beat the Market: A Scientific Stock Market System

He was the author of Beat the Dealer, the first book to mathematically prove,[citation needed] in 1962, that the house advantage in blackjack could be overcome by card counting. He also developed and applied effective hedge fund techniques in the financial markets, and collaborated with Claude Shannon in creating the first wearable computer.[1]

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