Average daily journey in points by instrument. - page 2

[Sceptic Philozoff]

Svinotavr: Jos, do you know the relationships between annual average, monthly average, weekly average, daily average and hourly average (bad word) price movements?

The stroke is roughly proportional to the root of the period. That is, if you denote the average hourly stroke as middle_H1, then

middle_period ~ middle_H1 * sqrt( period / H1 ).

[sand]

Mathemat:

The stroke is roughly proportional to the root of the period. That is, if you denote the average hourly stroke as middle_H1, then

middle_daily ~ middle_H1 * sqrt(24).

Don't you think that a good correspondence of forex charts to this ratio indicates that these charts are close to random processes?

[Sceptic Philozoff]

Yes, that's what I wanted to write about at the beginning.

[TheXpert]

sand:
Don't you think that a good fit of forex charts to this ratio suggests that these charts are close to random processes?

And what does that tell you?

[sand]

Mathemat:
Yes, that's what I wanted to write about at the beginning.

It raises the rhetorical question...

[sand]

TheXpert:
What does that tell you?

You cannot, by definition, make money from a random process.

[TheXpert]

sand:
You cannot, by definition, make money from a random process.

But you can make money from a process that looks like a random one.

[Vadim Zhunko]

sand:

By definition, you cannot make money from a random process.

By what definition? It's the first I've heard of it.

[Алексей Тарабанов]

Mathemat:

The stroke is roughly proportional to the root of the period. That is, if you denote the average hourly stroke as middle_H1, then

middle_period ~ middle_H1 * sqrt( period / H1 ).

Celebrating the 100th anniversary of the Lanchester equations?:)

[sand]

TheXpert:
And on a similarly casual one, you can.

Yes you can, but only if you have a clear idea of the differences from random.