Best trend following trading system
For the time being, we are interested in three-dimensional visualizations, but we will later move to high-dimensional abstract models. There are eight possible preference patterns among these gambles: the six rankings (each from best to worst): ABC, ACB, BAC, BCA, CAB, CBA, and two intransitive cycles that we label ABCA and ACBA. For example, ranking ABC is the point (1,1,1) in the space with coordinate system (A,B), (A,C), and (B,C) 5.
Open in a separate window Figure 2 Two different views of the same geometric representation of eight algebraic and one probabilistic model(s) for Gambles A, B, C.
Each of the eight possible preference patterns forms a vertex of the unit cube.