It starts with these excerpts on whether random strategies are better than technical strategies…
Many real systems work fine and more efficiently due to the useful role of a random weak noise… Not only physical systems benefits from disorder. In fact, noise has a great influences on the dynamics of cells, neurons and other biological entities, but also on ecological, geo-physical and socio-economic systems.
Standard trading strategies and their algorithms, based on the past history of the time-series, although have occasionally the chance to be successful inside small temporal windows, on a large temporal scale, perform on average not better than the purely random strategy, which, on the other hand, is also much less volatile.
For the individual trader, a purely random strategy represents a costless alternative to expensive professional financial consulting, being at the same time also much less risky, if compared to the other trading strategies.
And some part of me just wanted to test this out. Perhaps this could be done for some sociobehavioral experiments. If, in the long run, random strategies are better than non-random strategies, then might as well stop making predictions, since (as logic follows) they’re only performing well on small temporal windows…
Or maybe it could be implemented in some political voting mechanism… like avianto said…