The market is a controlled dynamic system. - page 160

 
tara:

Isn't it scary to fly a plane?


It is not scary at all.

.

But you can't just equate the aeroplane model and the market model -- if you go on like this, you can put any phenomenon in nature under the same head.

In the first approximation, we can limit ourselves to simple linear models when describing both the aeroplane and the market. But further detailing and refinement will inevitably lead to the need to introduce non-linear elements into both the aeroplane model and the market model - this needs to be understood. And it also needs to be understood that there is no definitive model that describes absolutely all the subtleties.

 
tara:

OK, I'm off to the bikes.

Modern cookers have burner temperature sensors,-if below a set point, Stop Loss. If the wind blows non-linearly.


There is. And it is the practical result of theory.

"There's nothing more practical than a good theory."

 
avtomat:


There is. And it is the practical result of theory.

"There is nothing more practical than good theory ".

For the market itself, this may be the normal weighted average state or behaviour, which cannot be said with certainty for practical trading in the market. It turns out there are too many pitfalls in practical trading that Eliot waves and other theories crash against.

Why am I being sad? There are always options for profitable strategies, although, as in all businesses, they are not available to everyone.



 
tara:

No, that's not what this is about. Here's a quote:

"...non-linear in the way of input."

The point is rather: in order to move a system from one state to another (output) it is more correct to talk about the energy or power of the input signal, capable of

to initiate this transition (but it's not just the power that counts) ....

Like pumping a working body in a laser.

 
sergeyas:

The point is rather: in order to move a system from one state to another (output) it is more correct to talk about the energy or power of the input signal that can

to initiate this transition (but it is not just the power that is important) ....

Like pumping a working body in a laser.



Power is not always the decisive factor. And there are many examples where a small impact leads to large consequences. The trigger effect. And this does not fit into linear models anymore.
 
avtomat:

Power is by no means always the decisive factor. And there are many examples where a small impact leads to big consequences. The trigger effect. And this is no longer within the scope of linear models.

I agree.

However, in order for the trigger to work effectively, the system has to be 'prepared' for it.

In other words - in order to take away the hard-earned honey from the bees (ordinary market players) it is better to calm them down first;)

PS:

When pumping a laser, the power spectral density is important, and radio engineering, TAU and DSP are just a stone's throw away.

 
sergeyas:

I agree.

However, in order for the trigger to work effectively, the system has to be 'prepared' for it.

In other words - in order to take away the hard-earned honey from the bees (ordinary market players) it is better to pacify them first;)

PS:

When pumping a laser, power spectral density is important, and radio engineering, TAU and DSP are just a stone's throw away.




Bees with honey and racketeers with a pipe --- a good allegory ;)

 
sergeyas:


When pumping a laser, the power spectral density is important, and radio engineering, TAU and DSP are just around the corner.


Look at our field as a discontinuous sliding mode control system.
 
avtomat:

Take a look at our field as a system with gap control in sliding mode.

I'll give it a try).

It is difficult to communicate with a practitioner on an equal footing, so I will read up on the subject first.

There seems to be no problem finding literature.

 

When are we going to start eating our potatoes?

>
Reason: