Some new ideas for your next trading system - page 2
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Idea 9: moving Mini-Max, a new indicator for technical analysis and its implementation in MQL5 (by investeo)
From original article https://www.mql5.com/en/articles/238
"There is a science, named Quantitative Finance, that allows to study the financial derivative pricing models using the methods of theoretical and mathematical physics. Lately I came across a paper that describes a new indicator for technical analysis that combines ideas from quantum physics and brings them to finance. I got interested in it and decided I would teach how to implement indicators based on a scientific papers in MQL5. The original Moving Mini-Max paper is written by Z.K. Silagadze, a quantum physicist from Budker Institute of Nuclear Physics and Novosibirsk State University. The link to the paper as well as MQL5 source code are available at the end of the article.
Never did I expect that I will write this sentence, but here I go explaining the quantum tunneling. Since I assume that most of the readers are not quants I will describe it in simple terms, I hope you will not feel offended. At first lets define in one sentence the idea behind technical analysis of financial timeseries. We are mostly looking to find:
The original idea of Moving Mini-Max indicator is to find tops and bottoms on the chart by using analogue of quantum alpha particle that tries to escape a nucleus. The problem is taken from the theory of alpha decay by George Gamov."
Idea 1: Using historical weight measure to learn emotional factor about people gain/lose weight to use on the market (by figurelli)
The idea here is to use some of the most emotional problems and desires of human bean, i.e., lose weight.
Like market prices, we have here supports and resistances, that depends too much from emotional aspects.
So, what about connect historical and real time information from several volunteers and try to identify a relationship with market movements, for instance EUR/USD trends?
But wait, you don't need to start asking for your workmates to help you ;-)
To create a trading system, the ideal solution would be an API or webservice where we connect to a provider of statistical weight historical information, segmented by several ways, like age, place, etc., and there are several apps for Smartphones with such providers that you can look for such statistical data.
That's really crazy! I had never thought something like that. I guess this approach is more for fun than anything else.
Thanks for sharing, but I'm not so sure about that, since my weight looks like EUR/USD trends lately ;-)
Anyway, as I have stated in other topics, there are several crazy ideas of the past that are paradigms now!
Regarding Idea 7 (pocket below), there is an emerging concept named Gamification, that I see as a good way to discover brand new ideas for trading systems.
The idea of Gamification is to apply game-design thinking to non-game applications, like automated trading systems (why not?).
In business, we have several new initiatives regarding Gamification, and you can analyse better the ideas related at this Gartner specific page about it.
Forum on trading, automated trading systems and testing trading strategies
Some new ideas for your next trading system
figurelli, 2014.01.30 01:00
Idea 7: a trading system connected to a video game and the other way around (by figurelli)
What about earning money while your son win a video game? ;-)
Well, several years ago I had an idea where I imagine a boy playing a race car video game that was connected in some way to the price movements of the market, i.e., to win the race he had to beat the market in somehow. My vision was that this would be someday a reality to extract human intelligence in a different way to solve trading complex work.
I shared this idea some day ago at this pocket topic below, created by arnovinc.
Thanks for sharing, but I'm not so sure about that, since my weight looks like EUR/USD trends lately ;-)
Anyway, as I have stated in other topics, there are several crazy ideas of the past that are paradigms now!
I understand your concept, in fact there's a science-based paradigm under which your system can be built, IMO.
However, we should first know something about Hume in order to understand it.
Click here to know about Hume
I understand your concept, in fact there's a science-based paradigm under which your system can be built, IMO.
However, we should first know something about Hume in order to understand it.
Click here to know about Hume
Since we have great platforms for paper trading and rapid prototyping today, like MT5, my vision is that several new ways of Sentiment Analysis are ready to be used and feed all sorts of trading systems, if we look outside the box.
But most of studies today just look at Behavioral Economics paradigms, like the use of natural language and texts. However, there are several ways to people express their sentiments, and, for sure, economists and developers get that data to model new trading systems.
But most of studies today just look at Behavioral Economics paradigms, like the use of natural language and texts. However, there are several ways to people express their sentiments, and, for sure, economists and developers get that data to model new trading systems.
I didn't know this, thanks for sharing. Is this your idea or it is something that has already been developed? Anyway it looks a bit like the chess problem. How can the market sentiment be programmed?
Yes, this is my idea. After the idea title I put a (by author) to identify the source.
So, what about bring your new ideas for trading systems (by lapacianlab)?
Idea 10: a trading system based on weather forecasting systems, and the other way around (by figurelli)
Some of the best Supercomputers on earth are, at this moment, running weather forecasting models.
"Meteorology continues to push the limits of supercomputing. Scientific objectives have always outpaced the available computational infrastructure. The largest operational centers will soon be surpassing a petaflop (quadrillion floating point operations per second) of peak performance. Weather forecasting centers are faced with increasingly complex and energy-intensive infrastructure that is increasingly complex and energy demanding. In addition, environmental observational data is one of the “Big Data” deluge areas that is growing exponentially. The challenge to the supercomputing industry is to provide tightly integrated solutions that address not just computing requirements, but data movement, data management and total cost of ownership. Providing such a solution depends on more than just technology—it requires the experience of architecting and delivering systems at scale and complexity." (Source: Cray blog)
So, why not use all this knowledge and technology to join the forecasting with trading systems? Maybe the results could be chaotic. Actually, weather forecasting is really a big challenge and one of the origins of the Chaos theory. But, who knows?
The way to do that is create a model using some of the best weather forecasting source data, since this data are ready and quantitative. For commodity prices (CFD market), it's easy to figure out the correlation with weather forecasting, anyway it's just finding the right models to discover a correlation with most of instruments from Forex and stock markets.
If you think this idea is no sense, please don't read the continuation below. ;-)
Well, and what about the other way around? Why don't we use all financial market trading systems knowledge, to, instead of just price forecasting, use to weather forecasting.
To do this, we just need some instruments regarding main cities historical temperatures. After all, you can use RSI or any other indicator to try forecast the temperature of any city, you just need this data converted as price in an instrument.
Yes, this is my idea. After the idea title I put a (by author) to identify the source.
So, what about bring your new ideas for trading systems (by lapacianlab)?
At the moment I'm much more humble than that. I can only try to solve your problem from a crazy approach. Let me explain please.
The world is very large, that's why I am sure that there are people in the world whose weight change in the last year can look like EURUSD. So let's suppose that we've been able to find that person, Bob, whose weight varies as EURUSD does. In this case, we can ask Bob for his weigh at a given time. That will be the signal to buy or sell!
Why would you believe that the correlation of Bob's weight with EURUSD would change now, just when you are entering the market?