Recently, I read a fascinating article in the New York Times Magazine titled "Can Game Theory Predict When Iran Will Get the Bomb?"

The article is a look at a professor from New York and his team who are using mathematical models to predict the probabilities of future events. The CIA has found that his models have been two times more accurate than the predictions made by the CIA's own intelligence.

What I find so interesting is that the financial markets obviously use models to predict market direction. We do this ourselves quantifying the potential movement of securities over the next few trading days.

Now it looks like there is an ability to quantify future events. If this is true (and it appears it's very true), imagine the implications it has on world events. And in trading and investing, imagine having the knowledge and probabilities to predict events as they tie into market prices.

The entire field of mathematical modeling and statistics continue to grow exponentially in all fields. And it provides further evidence that using correct statistical models is superior to discretionary opinions.

Here is the link for you to read the story. I hope you enjoy it.

"Can Game Theory Predict When Iran Will Get the Bomb?"

This is from Larry Connors' Daily Battle Plan which he publishes each morning. If you’d like to take a free trial click here, or call 1-888-484-8220 ext 1 to start your free trial today.

Larry Connors is CEO and Founder of TradingMarkets.com and Connors Research.