[kaushiks]

That is not true. I'm not entirely sure what you mean by "no typing system" so I'll go ahead and assume what you likely meant - no static type system.

Optimizing code written in a dynamically typed language is a pretty well understood problem (now) thanks to the SELF research at SUN and more recently the V8 Javascript engine. Both VMs employ type profiling at runtime to figure out what the compiler should assume the type of a dynamically typed variable should be. It can then emit code that treats a variable like it always has the profiled type - like a C++ compiler would. When such an assumption is broken at runtime, implementations typically fallback to an unoptimized version of the code (V8) to execute the rest of the continuation. Well written code is expected to achieve type stability pretty fast making the fallback overhead insignificant.