Pretty sure he meant the variably weighted spread between 2 or more highly correlated instruments, like A x SPY-B x DIA or a x ES-b x YM.:eek:
Do you see patterns in Random Walks?
- Thread starter atlTrader666
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Assume = Ass-U-me
This would be a good start:
http://online.redwoods.cc.ca.us/instruct/darnold/laproj/fall98/skymeg/proj.pdf
Cheers,
MAESTRO
Yes, that is a very old and incredibly inaccurate concept. As the matter of fact any particle physics concept cannot be explained using deterministic approach. That is why the quantum Random Walk theory is gaining momentum these days. Our minds are not capable to comprehend the existence of a particle, for example, in many different places at the same time. The same way we cannot comprehend the phenomenon of simultaneous interaction between unlimited number of species (traders, for example) that form a pattern that enables the propagation of information differently than the "IF - THEN" logic presents it. Randomness is not the measure of our ignorance, it is an expansion of our comprehension level.
Very eloquently put.
As Niels Bohr said, if you aren't shocked by quantum mechanics, you haven't understood it. It's since given way to all manner of disorienting theories, like M-theory and infinite multiverses with different laws of physics. Randomness on the quantum level is the lynchpin of all that.
However -- and I wonder if I'm the only one here who thinks this way -- I am always deeply disturbed by the assumed link between theoretical physics and human behavior. While I am an enormous fan of the philosophy of science that sprang from all that resulted from the discoveries since the 1950s, I am very skeptical of those who see this specific science as a universal metalanguage that provides a "sky hook" to certainty.
Why is randomness as defined by quantum mechanics assumed to apply to psychology, like market behavior? Is it simply because the language used to describe the former (mathematics) can be "fit" to the latter for certain periods of time?
I think the striking similarity of quantum mechanics with the information propagation phenomena naturally suggests the usage of similar models. Spontaneous Synchronization is a behavioral phenomenon that is awfully similar to the Quantum Walk models lately used in many areas of physics. We now believe that Taste, Smell, Thought processes etc. are based on Quantum Exchange and therefore could be modeled using Quantum Walk theory. It's a fascinating subject, however, it is incredibly difficult to operate with. It is a source of constant frustration to me as I struggle sometimes trying to imagine those parallel processes.
I have heard some theories implying that brains could operate as quantum computers on some levels. I did not think you would go that route, so that gives me pause for thought.
Are you saying in essence: core functions of how we process information may themselves be subject to quantum flux, and thus a set of individuals could exhibit similar patterns of randomness in their choices based on how they process that same information?