Abstract thinking - page 5

 
Реter Konow:


Maybe you have a formula for course formation?
 
yerlan Imangeldinov:
Maybe you have a rate formation formula?

Not at the moment.

However, it can be created - the traders must be designated as constants and their actions as variables (just kidding).


However, is it difficult to mathematically express a simple market situation:

Apples from the first trader cost 20 roubles per kilo. The second has 40 roubles per kg and you have 1000 roubles.

You can only buy half of the apples you need from the first vendor, and after that you will need to buy apples from the second vendor.

When you buy the missing quantity of apples for 40 rubles/kg, you will raise the current price of apples from 20 rubles/kg to 40 rubles/kg.

This is how you have formed the current rate for apples.

Everyone in the market is doing pretty much the same thing.

That's the whole formula for rate formation.

However, I think you are referring to the formula for predicting the traders' actions. Actions that you can neither know, nor predict.

There is no such formula.

 

A product of abstract thinking...)

EURUSD chart, M15, 2016.11.17 17:34 UTC, MetaQuotes Software Corp., MetaTrader 5, Demo

 
Реter Konow:

However, I think you are referring to the formula for predicting traders' actions. Actions that you can neither know nor predict.

There can be no such formula.

Why then do hedge funds make money?
 
Дмитрий:
Why then do hedge funds make money?

Do they have some kind of formula?

Everyone predicts as they know how, hedge funds included.

 
Реter Konow:

Do they have some kind of formula?

Everyone predicts as they know how, hedge funds included.

There is.

If they earn consistently, there is.

 
yerlan Imangeldinov:
Do you have a formula for course formation?

Of course there are trends in people's behaviour.

You can try to summarise, formulate and classify them. This is a very large and hard work, which results in only an approximate, probabilistic assessment of possible developments.

Alas.

 
Реter Konow:

Of course there are trends in people's behaviour.

You can try to summarise, formulate and classify them. This is a very large and hard work, which results in only an approximate probabilistic estimate of possible developments.

Alas.

Well, the world is not deterministic.

Hedge funds make money - so it is possible

 
Дмитрий:

There is.

If they are earning steadily, there is

The formula for shaping the course is the Grail.

Its existence undermines the foundation of the laws of reality, and turns the world into a fairy tale.

Such ideas are traps for the immature Mind.

 
Реter Konow:

The formula for shaping the course is the Grail.

Its existence undermines the foundation of the laws of reality, and turns the world into a fairy tale.

Such ideas are traps for the immature mind.

I don't know why the uninformed minds rave about some mythical "rate formation formula".

Knowing the general statistical characteristics of the process is enough to predict it