Machine learning in trading: theory, models, practice and algo-trading - page 3592

 
Aleksey Nikolayev #:

Data is a good thing.

I would also like a good theory for meaningful conversion of such data into attributes that would complement well the technical attributes derived from price.

I assume that there are two main factors - the price of money and the demand for money.

The price of money is the Central Bank's discount rate, which the bank changes to control inflation.

The demand for currency depends on the trade balance of different countries and its structure.

Statistical indicators help to estimate the level of inflation and demand for goods.

As a result, if statistical indicators show a possible significant change in inflation, which can change the discount rate, the market will react strongly to this news.

If rumours appear, volatility will increase. If the trend of interest rates changes, strong movements will start.

It is possible to forecast statistical indicators, but it is too complicated.

But it is easier to predict the market impact on the news.

At least tracking the change in expectations of interest rate changes and trends will be a good help not to trade against strong global movements.

 
Aleksey Vyazmikin #:

I assume that two factors - the price of money and the demand for money - are the main ones.

The price of money is the Central Bank's discount rate, which the bank changes to control inflation.

The demand for currency depends on the trade balance of different countries and its structure.

Statistical indicators help to estimate the level of inflation and demand for goods.

As a result, if statistical indicators show a possible significant change in inflation, which may change the discount rate, the market will react strongly to this news.

If rumours appear, volatility will increase. If the trend of interest rates changes, the market will start to move strongly.

It is possible to forecast statistical indicators - but it is too complicated.

But predicting the market impact on the news is easier.

At least tracking the change in expectations of interest rate changes and trends will be a good help, so that you don't trade against strong global movements.

Gosh, that's a new approach! Genius!

What should I call it?

К... К.... K. Carr. Carrie Trading!

 
Dmytryi Nazarchuk #:

Oh, my God, that's a new approach! Genius!

What should I call it?

К... К.... K... Carr. Carrie Trading!

Why the clowning around?

Yes, the price of money affects its quotes.

 
Aleksey Vyazmikin #:

Why the clowning?

Yes, the price of money affects its quotes.

It determines them.

Sorry, I'll give you a hint.

The rate is determined by the rate and the amount of money supply. The rate is a well-known curry-trading. It can be programmed, but the market reacts more often not to the rate itself, but to the words or even intonations of Central Bank heads when they give press conferences. The golden time was right after 2008 - everyone cut rates and it was possible to make excellent money.

The volume of money supply is an unknown quantity. Some countries do not publish these figures on purpose. Some countries, including even the USA, sometimes or always distort them.

All other indicators, like inflation and unemployment - the market reacts only in the sense that it may lead to a change in the rate. So sometimes the reaction to a rate change is strong, sometimes it is nothing, and sometimes it is strong but opposite.

 
Dmytryi Nazarchuk #:
I'll take pity, give you some hints.

Funny - you have written nothing new - it's all in my post.