Simulate the situation. If 1,000 people were forced to trade amongst themselves, how would the graph behave? - page 5

 
Aleksey Vyazmikin:

PJSCs go public, i.e. the shares may already be held by a large number of shareholders or, for example, they were bought up before the flotation at a lower price than the flotation occurred, then the asset will start to subside at the opening of trading because of the sell-off.

It is therefore important to determine what kind of asset it is, whether others have it at the start of this game or whether it is unique.

So the initial pre-IPO price is based on what price was bought for and probably the capitalisation of the company divided by the number of shares

that's the important question, the way an asset is issued to the market.

 
By the way, it's an interesting topic. We could start a "battle of the robots". There would still be one left in the end. Or no one will trade and everyone will be left behind.
 
Maxim Romanov:

So the initial pre-IPO price is based on the price at which it was bought and probably the capitalisation of the company divided by the number of shares

that's the important question, the way an asset is issued to the market.

They offer it at their estimated value and the market adjusts expectations. The value is announced in advance.

 
Dmitry Fedoseev:
By the way, this is an interesting topic. We could start a "battle of the robots". I have no doubts that it will be a real one. I would not trade and everyone would be left behind.

You could even do a battle of random robots. Or a whole package of robots with different techniques and decision-making parameters, and see who survives. You could even take some of the robots from the League of Trading Systems. I have a completely random robot. It has random trall, profit, entry, exit and even an instrument which is random.

 
Dmitry Fedoseev:
By the way, it is an interesting topic. You could start a "battle of the robots". One will be left in the end anyway. Or no one will trade and everyone will be left behind.

Working without optimising for tool behaviour is no easy task.

 
Dmitry Fedoseev:
By the way, it's an interesting topic. We could have a "battle of the robots". There would still be one in the end. Or no one will trade and everyone will be left behind.

Probably useful for understanding what's in our own heads.

 
Aleksey Vyazmikin:

Working without optimisation for the behaviour of the tool is not an easy task.

Why does it need optimization? In the end one of the algorithms will win anyway, it would be interesting to compare which algorithms will win on average with a large number of trials

 
Aleksey Vyazmikin:

PJSCs go public, i.e. the shares may already be held by a large number of shareholders or, for example, they were bought up before the flotation at a lower price than the flotation occurred, then the asset will start to subside at the opening of trading because of the sell-off.

It is therefore important to determine what kind of asset it is and whether others have it at the start of this game or whether it is unique.

I don't know how many percent of the stock market are speculators.

In our case, the market has only speculators who can sell virtual assets to one another and then close the deal. (on each other. or on other bidders).

Like the cryptocurrency market. there, too, the instrument is essentially worthless.
 
Aleksey Nikolayev:

Without market makers, there will be no price flow, but something like an occasional auction.

What makes you think that?

They gave people money and said "trade". I think they will actively trade amongst themselves.
 

It all depends on whether the amount of virtual asset traded in the experiment is finite.

If it is infinite (for any FX market participant the total mass of currencies can be assumed to be infinite), then eventually the price of the asset will not differ much from the SB, which is actually what we observe on FX.

If the quantity is not infinite, then we get what we see in classic bubbles (tulip fever, crypto) when the price begins to rise rapidly, market participants are trying to purchase as much profitable assets as possible, the process eventually turns into a movement of the asset into one hands, eventually one participant (or group of persons) receive the whole traded asset, the price stops growing rapidly and slows down, after which the price falls rapidly as the owners of the asset want to make a profit (the price cannot rise higher). Only few made money on speculation, most went bankrupt - their money has passed into the hands of the exchange and the few participants who at one time held most of the assets in their hands.

That's all the modelling.

Reason: