Article ID Journal Published Year Pages File Type
9727825 Physica A: Statistical Mechanics and its Applications 2005 15 Pages PDF
Abstract
Contrary to expectation, the actual market does the opposite of what game theory would predict. This points at a systematic oscillation in the market. Even though this result is not fully understood, merely observing that this trend is present in the data could lead to exploitable trading benefits. As a check, random history strings were generated from which the statistical variation in the game prediction was studied. This shows that the odds are 1:1,000,000 that the observed pattern in the market is based on coincidence.
Related Topics
Physical Sciences and Engineering Mathematics Mathematical Physics
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