what is market inefficiency - page 8

 
Igor Makanu:

You've got a lot on your mind...

With that logic, the director of AvtoVAZ should exclusively drive a VAZ model - as practice shows, it does not work

unfortunately, society is built that way, so some people write and justify theoretical material, and with due diligence reap laurels, while the flipside is foul language for those who try to apply these developments in practice ... including VAZ cars

)))

No, it's about the fact that theory is not initially given to everyone....)))) well if it is not given, the conclusion is that theory is unnecessary))))) It is possible to live well without it))))

 
Valeriy Yastremskiy:

Nah, it's about the fact that theory is not initially given to everyone....)))) well if it is not given, then the conclusion is that theory is unnecessary))))) It is possible to live well without it))))

It's not that) Reading the forum, I constantly recall an anecdote, where collective farmers who elected a delegate to a congress, advise him to take a stool with a hammer) You will sit at the congress and hammer on the stool, they say - all around are talking, and you do business)

 
TheXpert:

the efficient market hypothesis (and not the theory) predates arima (1970).

The efficient market hypothesis (not theory) appeared before arima (1970), with assumptions as early as 1900.

The hypothesis is because a lot of paradoxes follow from the definition, and it is still alive because no one has been able to formulate it better.

I was going to write that too, but you beat me to it ) and fuck the teachers who say that autocorrelation in regression models is good. And fuck the witches who guess or predict.
 
Dmi3:

An efficient market is one where all the information is already factored into the price. An inefficient one is one where it is not accounted for.

I present a typical inefficiency:

Trading on the MICEX futures market starts at 10.00, with some contracts (BR,GOLD and other commodities) traded around the world around the clock.

By 10.00, the price of the BR-x.xx contract is clear and there are limit orders from the evening session at levels which often do not correspond to the current price at all.

All you need to do is to learn how to buy these Limit orders at the opening of the exchange, i.e. at 10:00:00.000.

Go for it!

Respect!!!!))

 
vladavd:
So can you articulate what market efficiency really is and how to quantify it?

It's when you have an unfortunate entrance and an unfortunate exit ;)

 
 
transcendreamer:

ahahahaha )

 
Maxim Dmitrievsky:
I was going to write that too, but you beat me to it. ) Also, fuck the teachers who say that autocorrelation in regression models is a good thing. And fuck the witches who guess or predict.
Too bad you can't like it.)

 

Before talking about "efficiency/inefficiency" of the market, you should ask yourself what "efficiency" means in general, what the term means.

So far, there is no understanding here...

 

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I will not bore you with formal definitions here.

Reason: