<<Is it potentially thin ice to be trying to apply quantum criteria to an event horizon (the financial markets) that reside in an
Einsteinian relativistic world.>>
Why is that most wall street firms seem to like people with Ph.D. in physics and math (understandable) for their quant jobs? I personally belive behavioural patterns in financial markets can be identified. One can certainly use his/her math training for this. Be it quantum theory, Markov chains, stochastic simulation, multivariate statistical methods, Akaike's information criteria - whatever. As long as the positions taken to take advantage of the identified patterns do not disturb the patterns themselves, one can have an upper hand. Of course, the more advertised they are the less likely they will succeed.
For example, I have theorized that by measuring the delta (between two sessions) in ATM (or near) option open interest of a particular stock is a clear indicator of the near term movement of a stock. Of course, the wild card is always the "news." Of course, this doesn't have to be a contrarian indicator. But, I don't have the resources and time to analyze and study the data.
Well, as much as I despise traditional TA, this is also one type of TA. But, the difference being it is "non-traditional." |
