The Blank Swan

The Blank Swan is Elie Ayache's highly original treatise on the financial markets—presenting a totally revolutionary rethinking of derivative pricing and technology. The book begins with a revolutionary idea: that while efficiency may be random and unpredictable, it helps to think of the market as if it were an ecological niche, where only the fittest can survive. This revolutionary idea leads Elie to formulate his fundamental law of trading, which states that there exists no difference between an efficient market and a random generator. In other words, what actually happened on 19th October 1987 is simply non-reproducible outside 19th October 1987—you cannot reduce it to a chain of causes and effects, or even to a random generator, that can then be reproduced or represented in a theoretical framework. '