How to Beat the System
How to Beat the System
By Adam Sinicki
There
are many different systems in our world. Mathematical systems,
physics systems and literal systems run by people to keep things in
check. As a general rule we are forced to play along here with these
systems and to go along with them in order to get by. However the
brilliant news is that if you can find a way to exploit
the
system, or if you
can work out the underlying patterns and work them to your favour...
then you can potentially achieve the impossible and achieve a freedom
and a dominance over that system.
Okay so that's a pretty abstract introduction. In short I have
managed to say approximately nothing yet in 96 words. So let's take
an example – a man called Ed Thorpe.
Who is Ed Thorpe?
Ed Thorpe is the name of the man who invented 'quantitative
investing'. In other words he bought stocks and shares. The stock
market is of course a system – and although we might not think it,
it is in fact largely predictable and can follows specific laws and
rules – like any good system ('Quants' as they are called refer to
a hidden 'mathematical truth' behind the stock market called 'Alpha'
or simply 'The Truth'). What Ed Thorpe did was to expose some of
those rules and laws and to then exploit them to the point where he
could extract a lot of money from the market and profit hugely. He
then created programmes to do this maths for him and did just that,
inspiring a whole generation of successful investors.
How did it work? Well essentially it looked at the difference in
certain stocks in terms of the price they were being sold at and
their real value. This was calculated using a lot of data such as the
amount people were buying and the rate of sale and this information
could be used to predict how the stock value would rise and fall and
to suggest which stocks to invest in. By beating the system – in
this case the stock market – Ed Thorpe found himself with an
infinite money tap that he could turn off and on.
Beating the Casino
This
wasn't Ed's first claim to fame, and actually he had previously
created an unlimited money tap by beating another
system.
This time it was
the Casino where Ed Thorpe found a flaw in blackjack – and a means
to tip the odds in his favour.
Essentially Casinos make their money by having the odds tipped
marginally in their favour (for instance the zero on the roulette
table means that there is always a slightly higher chance of house
winning bets even if the gambler gambles on red or black (which most
people believe to be 50% of the wheel). It's essentially an elaborate
magic trick and over the thousands and thousands of games this slight
advantage ensures Casinos turn over a healthy profit.
Ed Thorpe however tipped the odds in his favour by realising that in
Blackjack (21), the odds were in his favour once all of the 10s had
left the deck. Once all four were gone then he could begin to bet
high and would thus start to win back any money frittered away
previously – and then some. Again here he had beaten the system.
Other Examples
There are plenty more examples of beating the system – of having
one moment of clarity and seeing how everything works so that you can
predict it or exploit a weakness. In science this happens all the
time when scientists and engineers understand better how physics work
and can so apply this to various applications that make them rich or
solve big problems. Though it's fictional I love the idea of Tony
Stark being able to create an unlimited source of energy – by
understanding physics – and then beating the system such that he
could fly and achieve invulnerability.
I
myself have been working on beating a system and have largely
accomplished it. The system is language - and I've beaten it by
creating a computer programme that can write me articles from
scratch. It's not the first of its kind I can't take credit for that,
and it's not quite as miraculous as it sounds (this isn't AI and it
won't be creating original poetry). However it is unique in that it
beats the system in different ways to other examples, and in the fact
that it works
(I
get to feel very smug about that). The main application of this is
the bottomless money drink again – I sell articles so lo and behold
I never have to work again (though it's yet to get to that point it
is certainly looking promising). More likely though I'll use it to
promote this site – and
I'll
use it to start
writing other things – huge things. Like the world's biggest
encyclopaedia.
I
believe that language truly is a system to be broken – and I
believe that by reducing it further we can in fact change the very
way we think – and think faster
and
better.
That's for another day though...
Creating New Systems: Claude Shannon
And there's another way to benefit from systems too – and that's
to start making them. Heading back to Ed Thorpe for a moment, let's
look at a friend of his: Claude Shannon. Also a genius and an
incredible inventor, Claude Shannon is credited with what must be one
of the most practically amazing breakthroughs of all time – he
applied a two symbol logic system to electronics. That logic system?
A little something called binary – the foundation for all
computing.
Binary works in a very simple way – using switches – whereby a
value of 1 means that the switch is on, and a value of 0 means that
the switch is off (this can also be 'charge' – if there's charge
it's on and if there aint it aint). Miraculously every computer
programme or electronic device that you've ever used boils down to
this and even the most amazingly beautiful 3D game boils down to
binary. By creating binary, Claude Shannon made a basic system upon
which anything could be built.
For
a little better understanding – this is irrelevant but you might
find it interesting – this essentially works via logic gates. Logic
gates are situations that can be translated into English (language
cropping its head again...) as 'AND, IF, OR'. So imagine you have a
basic circuit with two switches. At one end is a light bulb and at
the other is a battery. Now imagine a fork in the road so that the
two switches are next to each other and the current can travel either
way. That's an 'OR' gate because if either
switch
is on, then the
light will go on. In a programming language it might say 'light = on
IF switch1 = 1 OR switch2 = 1'. On the other hand, if the two
switches were in a row
this would create an 'AND' gate. This is because now the current
would have to pass through both
gates
to make the light
switch on. Behold 'light = on IF switch1 = 1 AND switch2 = 1'. Right
there you have the physical foundations of programming. And it's all
thanks to Claude Shannon.
The purpose of this article was to inspire. I hope it's helped. Can
YOU beat a system?
Copyright 2012 The Biomatrix.Net
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