The market is a controlled dynamic system. - page 550
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The topic is closed. For discussing a deleted one, you get a ban.
If the topic is 'closed', why can you write in it?
I would say that the topic is inherently meaningless, because "dynamic system" implies determinism, the market does not immediately fit the definition.
Initially, we are talking about stochastic dynamical systems. This is quite in line with modern financial mathematics.
I would say that the stated theme makes no sense from the outset, because a 'dynamic system' implies determinism, the market does not immediately fit by definition.
Very much so. And a dynamic system does not necessarily have to be defined by factors that can be accounted for, or they (the factors) are strictly deterministic. And the wandering component (cumulative response to multiple influences of participants that cannot be accounted for) of the market makes the topic relevant.
Originally, this is about stochastic dynamical systems. This is quite in line with modern financial mathematics.
OK, let's say stochastic. The point is that in a simplified view, the system for a trading tool is well-known and extremely simple - it is a double auction, the price chart is the result of the engine matting according to the double auction principle reflected on the timeline.
The regularities are not in the system, but roughly speaking in the control signals, so adding the system to the search complicates the task and contradicts the principle of Occam's razor.
Very much so.
Uh-huh.
____
In short, if you want to poke around in this topic, be my guest, but the outcome is likely to be like a tractor.
OK, let them be stochastic. The point is that in a simplified view, the system for the trading tool is known and extremely simple - it is a double auction, the price chart is the result of the engine matching according to the double auction principle reflected on the timeline.
The regularities are not in the system, but roughly speaking, in the control signals, so adding the system to the search complicates the task and contradicts the principle of Occam's razor
Uh-huh.
____
In short, if you want to poke around in this thread, be my guest, but the outcome is likely to be like ***.
I quite agree that the "physics" of the market itself can only be described by applying the apparatus of game theory (the auction theory is one of its sections). Another thing is that the practical application of such models usually lies in the transition from such game models to probabilistic (stochastic) ones. As a matter of fact, a considerable part of modern economic science "digs" in this direction.
In my opinion, a stochastic dynamical system should be quite logically obtained from the initial "physical" game-theoretic model of the market (with the account of some simplifications and additional assumptions). On the other hand, this very system should not strongly contradict meaningful trader intuition.
I would say that the topic makes no sense from the outset, because "dynamic system" implies determinism, the market does not fit immediately by definition.
A plane comes in for a landing, the wind blows from the right, then from the left, then from somewhere else. And the strength of the wind is always unpredictable, and one would like to land safely.
It is a controlled dynamic system. Deterministic? Andrei, let us not be absurd.
The automaton has been trying to do just that for a long time, because that is exactly what it loves and knows how to do.
You can laugh, you can imitate...
He thinks it lacks the dimensionality of the model. A little more and it's a win win.
I think the problem is the input data, it needs some kind of aggregates, I guess...
And market-dependent aggregates, too )
What don't you like about the PNB theory that doesn't explain your fantasies?
The plane is coming in for a landing, with the wind blowing from the right, then from the left, then from somewhere else. And the strength of the wind is always unpredictable, and I'd like to land safely.
You are getting old ) your brain doesn't work at all. The aircraft's sensors are used to predict the weather and nobody cares about the aircraft.
You are getting old ) your brain does not work at all. the task is to use the plane's sensors to predict the weather and nobody cares about the plane.
Andrei, it is clear that I am getting old. What are you talking about?
You're getting old ) your brain doesn't work at all. the aircraft's sensors are used to predict the weather and no one cares about the aircraft.
Sensors to predict the weather? How is that even possible? What about a medical thermometer that will diagnose the patient?