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What is XG Thinking here?

Posted By: Timothy Chow
Date: Sunday, 14 September 2014, at 3:00 p.m.

In Response To: What is XG Thinking here? (Dmitriy Obukhov)

This is a long thread but it seems that most people have missed the point, forcing Dmitriy to repeat the obvious over and over again.

I don't think that there's anything deep going on. XG doesn't evaluate cube decisions in terms of market losers. It does a cubeless lookahead, averages 0-ply equities, and then waves some sort of Janowski-like magic wand to convert cubeless equities into cubeful equities. It's easy to imagine inaccuracies creeping in either in the 0-ply evaluations or the magic wand.

Do you actually want to know the details of the magic wand so that you can reproduce the entire calculation? Or is this level of explanation enough?

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