Showing posts with label Emanuel Derman. Show all posts
Showing posts with label Emanuel Derman. Show all posts

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 ;)