Statistical arbitration - page 10

 
Ром:

You'll get a cucumber from a Corvette on a Corvette with an elephant's ping, even if you have instant speed, but not if you have a competitive algorithm.

That's right, if the algorithm is the same. Of course HFT will not work in any case, but on the noise created by HFT, it is quite realistic to play.
 
Ром:

It's OK.) Confidence doesn't hurt. You can't take your first steps without it.

When (if) you start testing and researching what it is, you'll understand (or maybe not) the importance of maths and algorithm.

There's serious competition among algorithms that run on direct connections on servers in the exchange's colocation zone and have roughly the same roundtrip.

You can get a cucumber from a quickie on a corvette with an elephant's ping, even if you have instant speed, but not if you have a competitive algorithm.

It is clear that the algorithm is important, I do not mean that there are no complicated formulas, it's more about studying the behavior of other algorithms, if the competition is big
 
Maxim Dmitrievsky:
It is clear that the algorithm is important, I don't mean that there are no complicated formulas, it's more about studying the behavior of other algorithms, if the competition is big

That's right! (About calculating behaviour). In trading, there is serious competition on all fronts. And the price chart is nothing but the result of the actions (behavior) of other participants (algorithms). The basis of any profitable trading is the calculation (prediction) of the actions of other players.

Ultra-complicated formulas. What are they? Are they formulas that have incomprehensible icons drawn on them that even Google does not know?)

Supercomplex can be screwed on nothing anywhere and get bogged down in it, if only there were a desire. The question is whether it will do any good?

 
Ром:

That's right! (About calculating behaviour). In trading, there is serious competition on all fronts. And the price chart is nothing but the result of the actions (behavior) of other participants (algorithms). The basis of any profitable trading is the calculation (prediction) of the actions of other players.

Ultra-complicated formulas. What are they? Are they formulas that have incomprehensible icons drawn on them that even Google does not know?)

Supercomplex can be screwed on nothing anywhere and get bogged down in it, if only there were a desire. The question is whether it will do any good?

I mean the same thing, it was just written before that there are serious formulas, read a few posts ago, there are links
 
Maxim Dmitrievsky:
I'm just saying here before it was written that the formulas for calculation are serious, read a few posts ago, there are links

Well, it has nothing to do with arbitration. It's not about the complexity of formulas. In fact, I wouldn't link "strategy" and "formula".

There https://tspace.library.utoronto.ca/bitstream/1807/70567/3/Rubisov_Anton_201511_MAS_thesis.pdf The complexity is in understanding the essence of applied methods of statistical researches, which is difficult to grasp for a university graduate without an in-depth study of matstat.

The strategy based on simple indicators is also "complicated". This does not mean that "geez, there are a lot of formulas in Mach Mach and Stochastic - fuck them - I'll trade by coffee grounds". And the guessing of long/shorts on the coffee grounds may be hardcore investigated by a good academic if he wishes... to estimate the degree of influence of the coffee sort on the results of Monday's trade. Whether it will do any good is the question...)