Modeler's Creed (Finance, search, whatever)
Financial markets are alive. A model, however beautiful, is an artifice. To confuse the model with the world is to embrace a future disaster in the belief that humans obey mathematical principles.
How can we get our fellow modelers to give up their fantasy of perfection? We propose, not entirely in jest, a model makers’ Hippocratic Oath:
• I will remember that I didn’t make the world and that it doesn’t satisfy my equations.
• Though I will use models boldly to estimate value, I will not be overly impressed by mathematics.
• I will never sacrifice reality for elegance without explaining why I have done so. Nor will I give the people who use my model false comfort about its accuracy. Instead, I will make explicit its assumptions and oversights.
• I understand that my work may have enormous effects on society and the economy, many of them beyond my comprehension.
30 notes
-
orbicularvul liked this
-
premierepige liked this
-
parvenuhark8 liked this
-
dextergander liked this
-
dinghyinlyin liked this
-
moneyaggluti liked this
-
miscarryfixe liked this
-
youngadultsextremelatex liked this
-
offereffecti liked this
-
realityprettydoublepenetration liked this
-
aainslie liked this
-
spurpura posted this
