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It's a metaphor for market behavior.
Initially
the theory was called, the "Theory of Wild
Beasts, Gentle Lambs, and Playful Trout",
and now the"Theory of Wild Beasts" for
short.
The
idea for the name comes from guru speculator Victor
Niederhoffer, who says in his book, The
Education of a Speculator :
"
. . . all I can say definitely
is that prices sometimes move like wild beasts,
sometimes like a gentle lamb, and sometimes like
a playful trout."
He
is right to point out that prices often exhibit
different characteristic behaviours. There are
times when prices behave like a pack of wild elephants
stampeding through the jungle demolishing everything
is sight. But they can as well be as playful as
gentle lamb, or they can skip about like trout
during mating season.
It
is THIS kind of essence that
this framework tries to capture.
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