Discussing the article: "The price movement model and its main provisions. (Part 3): Calculating optimal parameters of stock exchange speculations"

 

Check out the new article: The price movement model and its main provisions. (Part 3): Calculating optimal parameters of stock exchange speculations.

Within the framework of the engineering approach developed by the author based on the probability theory, the conditions for opening a profitable position are found and the optimal (profit-maximizing) take profit and stop loss values are calculated.

In the previous articles (Part 1 and Part 2), I presented the fundamental principles and latent mechanisms for generating price dynamics, which was purely theoretical in nature and even went beyond the scope of what was observed (being, however, the basis of it). In this and subsequent articles, I will try to lay the foundations of a new engineering discipline (where many calculations will be of an evaluative nature), which would allow users to draw practically useful conclusions from the observed price dynamics and directly apply them in trading. In this article, I will talk about engineering approaches and algorithms that, in general, are able to provide sustainable profits, as well as probabilistic calculations of those optimal take profit and stop loss values that would allow achieving the maximum average profit.

Author: Aleksey Ivanov