The market is a controlled dynamic system. - page 286

 
avtomat:

No, it isn't. I have expressed my thought. And this is an expression of your thought.


Oh no my opinion of the market is completely different from the one presented. As I understand it from what I have seen (your illustration). Traders (fleas, ticks, etc.) suck blood from a donkey, as well as living on its wool, and they are warm and cozy there, as well as nourished and carefree. Consequently, those who want fun, lots of money, while doing nothing, need to become traders. On the other hand (fleas, ticks, etc.) living in a non-market, they have nothing to eat, they live in hunger and cold and are doomed to extinction. As I understand you post above explains the point of the branch. Am I understanding your point correctly?

 

zy.

And the man is there for a reason, he is in charge of planning, i.e. he is the top hierarchical level in the metasystem:

That would make sense ;)

 
avtomat:

zy.

That would make sense ;)



I think we'll have to work it out in detail. But before that, go have some tea!

 
avtomat:


Oleg, you've been trying for how long (two, three years?) to convey the idea of what a controlled dynamic system is to these dumb ignorant respected forum participants. Maybe you should give up already and . just post a list of textbooks?))
 
alsu:

Oleg, for how long (two, three years?) are you trying to convey to these stupid ignoramuses respectable forum participants the idea of what is a controlled dynamic system. Maybe you should give up already and . just post a list of textbooks?))

Such a list would be very extensive, and there is no need to compile it. It is sufficient to type "Automatic Control Theory" into a search engine, and you will get a list of books from which you can select books of varying degrees of difficulty. Besides, at the end of each book there is a list of references extending the field of knowledge. He who seeks may find!

 
So what is the point?
 
A dynamic system is a set of elements for which the functional dependence between time and position in space of each element of the system is specified. This mathematical abstraction allows us to study and describe the evolution of systems in time.

The state of a dynamic system at any time moment is described by a set of real numbers (or vectors) corresponding to a certain point in the state space. The evolution of a dynamical system is defined by a deterministic function, i.e. after a given time interval the system will take a particular state that depends on the current one.
alsu:

Oleg, you've been trying for how long (two, three years?) to convey the idea of what a controlled dynamic system is to these dumb ignorant respected forum participants. Maybe you should give up already and . just post a list of textbooks?))


Everything is clear here, also for me dumbass, but what is the relationship between the market, and in the specific case of the EUR/USD instrument, and the Dynamic System?

 
alsu:
So what is the point?

Well, what is the point of compiling a reading list? Whoever is interested in this topic will find it. Yes, and previously I have mentioned here more than once about the literature. Well, those who are not interested in this topic, and that list of literature is not needed, no matter how extensive it may be.
 
strategist:


A dynamic system is a set of elements for which the functional dependence between time and position in space of each element of the system is specified. This mathematical abstraction allows us to study and describe the evolution of systems in time.

The state of a dynamic system at any time is described by a set of real numbers (or vectors) corresponding to a certain point in the state space. The evolution of a dynamical system is defined by a deterministic function, i.e. after a given time interval the system will take a particular state that depends on the current one.


Everything is clear here, also for me dumbass, but what is the relationship between the market, and in the particular case of the EUR/USD instrument, and the Dynamic System?


The connection is as follows.

Market is a system, i.e. "set of elements for which functional dependence between time and position in space of each element of the system is specified". In this case the elements are all that we can imagine as market agents, 'functional dependence' are laws of supply and demand, and 'space' is of course not space in the usual sense, but the so-called phase space, that is the set of all possible sets of characteristics of all processes occurring in the market, depending on time. In mathematics, "set" is called by the clever word "vector". Basically, everything that we can describe with a set of characteristics, no matter how long, is a dynamic system, so all those laws that are proved and derived for dynamic systems are applicable to it.

It is clear that the actual quantitative characteristics of the market are quite numerous, for example, for each trader it is possible to introduce numerical indicators such as the amount of available funds, risk appetite, speed of reaction to news, etc. So how do we study such systems? Here we are helped by the consideration that the behavior of agents is actually not as independent and chaotic as it seems at first glance. Indeed, traders to a greater or lesser extent read the same news, watch on TV forecasts of the same analysts, have very similar psychological mechanisms (information-greed-fear interaction) affecting the execution of market deals. As a result, stochastic degrees of freedom appear in a complex system instead of purely mechanical ones corresponding to each trader's individual characteristics.

It is like the way we study gases, measuring their pressure but not the force of each molecule hitting the wall of the vessel, the temperature but not the energy of each molecule; and the macroscopic characteristics of the gas are in a very precise physical relation to each other. This is also the case in the market: similar characteristics of microscopic interactions form, at the macro level, quite sane laws of motion with not so many effective stochastic degrees of freedom.

 
avtomat:


Do you have proof that the market is a controlled dynamic system? Do you have a mathematical formula directly determining the future of the market?

Let's go back to the explanatory picture.

What do I see in it!

Is the carrot the control, or is it the goal, and the control is taken over by man. Is the market being exploited, or yet. Does the inexperienced trader fall into the clutches of a ruthless market. The explanatory picture itself is more misleading.

The answer is needed here: The market is a controlled dynamic system YES or NO.

P.S. Maybe the branch itself is by implication. It would be! The market is a controlled dynamic system!

Reason: