Article ID | Journal | Published Year | Pages | File Type |
---|---|---|---|---|
9727825 | Physica A: Statistical Mechanics and its Applications | 2005 | 15 Pages |
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
Authors
Robert D. Groot, Pieter A.D. Musters,