The battle: an efficient market and a TS with a positive maturity expectation. Who will win? - page 3

 
Player_2:
meta-trader2007 РїРёСЃР°Р" (Р°):
Player_2:
It's a speculative market, that's the problem for speculators - there's a lot of competition and everyone is trying to cheat with their systems :)
But KimIV is right.

Metatrader 2007: Imagine you need to exchange a hundred quid for euro, and there's no forex (not in any form, ie no exchangers or banks on the streets either). Listen carefully how you will do it. :)


Forex in its current form was created in 1975 by a market formation agreement in Kingston, Jamaica. But currencies existed before and were exchanged back then. So forex is not a hindrance if you need to exchange one currency for another.


So I asked, how exactly will you exchange? For example now I can go out in the street, walk 15 minutes to an exchange office and change. 15 minutes only. And I clearly know that the exchange price is about the same in other places. And I don't have to run all over town to find the price picture (the depth of the market).
And how will you do the exchange? How much time will it take to find counterparties (they must not be speculators, otherwise it is already a "parasitic" market)?

It is one thing to change currencies, it is another thing to have an efficient Market, which does not give profit for a long time.
And in the days before Forex you could exchange currencies at the bank simply.
 
meta-trader2007 писал (а):
Player_2:
meta-trader2007 РїРёСЃР°Р" (Р°):
Player_2:
It's a speculative market, that's the problem for speculators - there's a lot of competition and everyone is trying to cheat with their systems :)
But KimIV is right.

Metatrader 2007: Imagine you need to exchange a hundred quid for euro, and there's no forex (not in any form, ie no exchangers or banks on the streets either). Listen carefully how you will do it. :)


Forex in its current form was created in 1975 by a market formation agreement in Kingston, Jamaica. But currencies existed before and were exchanged back then. So forex is not a hindrance if you need to exchange one currency for another.


So I asked, how will you exchange it? For example right now I can go out on the street, walk 15 minutes to an exchange office and change. 15 minutes only. At the same time I clearly know that the exchange price is about the same elsewhere. And I don't have to run all over town to find the price picture (the depth of the market).
And how will you do the exchange? How much time will it take to find counterparties (they must not be speculators, otherwise it is already a "parasitic" market)?

It is one thing to change currencies, it is another thing to have an Efficient Market that does not make a profit over a long period of time.
And in the days before Forex you could exchange currencies at the bank simply.



Nah, a bank is a speculator, parasitic on the economy and does not produce anything. You can't exchange in it. It is an element of parasitic forex.
So, no answer, as expected. (I'm not talking about efficiency here, but about alleged parasitisation. There is no parasitization. They are parasitizing on speculators, but they are ready to do it themselves, wishing to parasitize on ordinary participants, who are just exchanging one currency for another).

As for efficiency, that's just a theory. There used to be, for example, a theory that the earth was flat and rested on three whales. And even practice has confirmed it for a very long time.
 
What kind of nonsense are you talking here? Parasites... parasites on the economy. The economy does not tolerate parasites. These, as you call them, "parasites" do the economy more good than harm.
 
Player_2 писал (а):
No, a bank is a speculator, parasitic on the economy and producing nothing.
The bank produces and sells services that are in demand.
 
KimIV:
Player_2 wrote (a):
Nah, a bank is a speculator parasitic on the economy and produces nothing.
A bank produces and sells services that are in demand.
That is clear. But in terms of meta-trader2007 theory the bank is a parasite
on the economy, it follows from his claim that forex is a parasitic market.
 
KimIV:
What kind of nonsense are you talking here? Parasites... parasites on the economy. The economy does not tolerate parasites. These, as you call them, "parasites" do the economy more good than harm.

No one is talking about parasites, it's just a figurative example that shows the nature of the market. A faceless, amorphous market pulls money in like a black hole. It only changes constantly so that no one can make big profits and take them out of the market.
This means that an adaptive trading system has to be created, which adapts to market changes and is always profitable (not without losing losses, but not without constant losses).
This system should change together with the market and always correspond to it - this will be the key to profitability.
 
Player_2:
KimIV:
Player_2 wrote (a):
Nah, a bank is a speculator parasitic on the economy and produces nothing.
A bank produces and sells services that are in demand.
This is clear. But in terms of meta-trader2007 theory the bank is a parasite
on the economy, it follows from his claim that forex is a parasitic market.


The bank is not a "parasite". An efficient market does not offer the possibility of sustained profits from speculating on it. It tends to take money away from the trader/investor. A market without money is nothing. The market's profit is based on a small part of the money that is generated by the movement of money within the market. Therefore, it strives to prevent withdrawal of large amounts of money, so it is in a constant state of change. By creating an adaptive trading system that always matches the market, you can end the "flight" of money into the market.
 
meta-trader2007 писал (а):
The bank is not a "parasite". An efficient market does not offer the possibility of sustained profits from speculating on it. It tends to take money away from the trader/investor. A market without money is nothing. The market's profit is based on a small part of the money that is generated by the movement of money within the market. Therefore, it strives to prevent withdrawal of large amounts of money, so it is in a constant state of change. By creating an adaptive trading system that always matches the market, you can end the "flight" of money into the market.


Don't be fooled. To your adaptive system the market will come up with its own adaptive counter-system, which will confuse your adaptation with a bunch of false signals. The market is a crowd of speculators, who are trying to take money from each other, no one wants to give it back. So it is clear that it is difficult to make money here.

By the way, it seems that vain traders who want to become famous and show how smart and cool they are, have blabbed their systems. And then they wonder why the market has become efficient.
 
meta-trader2007 писал (а): By creating an adaptive trading system that always matches the market, you can put an end to money "running away" into the market.
Let's leave it on that major note. All that remains is to figure out what "market matching" means.
 
Mathemat:
meta-trader2007 wrote (a): By creating an adaptive trading system that always matches the market you can put an end to "running away" money into the market.
Let's better stop on that major note. All that's left to do is to figure out what "matching the system to the market" means.

Stop? Are you saying that we have to give up, admit that you cannot earn on Forex, and withdraw deposits from your account and go to the factory? :-) If you want you can do so, and I will continue to fight the market.

Conformity to the market - means that the trading system must indicate the points of entering the market so that each and every pose has a positive mathematical expectation for any market volatility. There is a mathematical expectation for each specific trade, of course, it would be better to say that this mathematical expectation should be potential, or rather it should be 100% probability of the positive outcome of a trade. This probability should be provided by the system's adaptability to any volatility: from flat +-10 pips to large trends and sharp, powerful movements.
Reason: