"Technical Analysis in Financial Markets"

1: Henceforth abbreviated as BH.
2: However, if F_t^ma-F_t^fund becomes large which causes q_t^fund𔾾, this can cause numerical problems in computing the market equilibrium price, because of floating point errors in the computer simulations. These problems are avoided by placing a lower bound m^fund>0 on the probability with which the fundamental belief is chosen.
3: Moreover, especially in our final two type trader model, by placing a lower bound on the probabilities, we can avoid numerical problems in computing the market equilibrium price, because of floating point errors in the computer simulations.

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