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Strategies & Market Trends : 2026 TeoTwawKi ... 2032 Darkest Interregnum -- Ignore unavailable to you. Want to Upgrade?


To: Maurice Winn who wrote (105511)4/12/2014 4:52:28 PM
From: GPS Info  Read Replies (1) | Respond to of 217769
 
Hopefully you are persuaded.

No, not one bit.

I'm not going to try to come up with an actual mathematics equation to define the process.

I thought not. So you have a theory without equations. Good luck to whomever buys into your theory. I still hope you and your followers makes oodles in the markets. Once I can measure your success, I may makes some bets myself. Otherwise, I have no interest in a quasi-formulated financial theory; I want numbers that I can crunch through. As a substitute you could tell me of any market bets that you may have placed based on this theory, and their outcomes. Best of all, you can tell me of bets that you’re still waiting to payoff based on this theory.

I already know about HFT from reading about them for the last several years. I also understand the dangers for overall markets and the guarantees profits for the large players with computer systems near the trading centers. I also understand margin calls. However, none of this would lead me to believe in your theory that leads to an understanding of “flash” being equivalent to several months of market upheaval.

You could arbitrarily define "flash crash" to mean one that happens in less than a second, or minute, or hour, or day, or week, or month, or year. But the time is irrelevant. What matters is the process and what to do to profit and avoid being smashed.

It is not arbitrary to label a rapid price change that happens within a few seconds as a “flash crash.” These have been called flash crashes specifically because they happen so quickly. The point was to distinguish these from market downturns occurring over several months or years. With a flash crash no human can respond quickly enough to prevent a loss. This is the central point of a flash crash. Other market crashes have occurred over many days whereby human traders could place order and have a chance of the order being filled. This is what I think that you don’t understand about the term, or maybe you just want to avoid admitting it.

But the time is irrelevant.

I absolutely disagree. The ability to respond on a human timescale is absolutely paramount.

So our Financial Relativity Theory Reynolds Number needs to have a variable to defin loan levels.

Well, you may want to have a variable to define the quality of the loans along with the level of loans.

we could probably find an economics book which tries to put some equations on the transition from laminar flow to turbulent flow

Please get back to me when you find one, and we can both review its applicability to redefining “flash crash.”