Friday, June 1, 2012

The Financial Modeler's Manifesto

From Emanuel Derman and Paul Wilmott - The Financial Modeler's Manifesto

The Modeler's Hippocratic oath (based on the original Hippocratic Oath) is amusing:

The Modelers' Hippocratic Oath
~ I will remember that I didn't make the world, and 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.

Nah, don't see it taking off ;)