The science of optimal decision making


My name is Ken Medanić, I have a graduate diploma in business administration, specialization in finance and I am currently enrolled at London University in their Masters of Finance and Finance Law program. 

For the last 8 years I have led a privately funded research and development initiative into the biological and neurological responses of the human body whilst trading the financial markets.

Our findings demonstrate that the most effective means to mitigate market risk and maximize market opportunity is by monitoring the biological responses of the trader in real-time.

Optimal Vs sub-optimal decisions

We find that the key determining factor of financial market risk is the human-being. We find that losses in the financial markets are attributed to poor decision making on the part of the trader/investor. Further, we find that poor decision making is a consequence of fear, trepidation and anxiety, which have specific biological symptoms. 

Much the same way, financial gains and optimal financial market decision making also has specific biological symptoms, better known as “biomarkers”. 

By being able to discern between the two states of human performance we can mitigate trades based upon the biological state of the trader, thereby providing an advanced risk-management tool for every institution.