Game Theory for trading

[ph1l]

See references 2-6 at the end of the quote.

Game theory is a framework for explaining social situations and interactions among competing players. It is the process of modeling the strategic interaction between two or more players in a situation containing set rules and outcomes⁶. Game theory can be applied to trading to explain how traders compete in the zero-sum game⁶. Using game theory, real-world scenarios, such as pricing competition, product releases, and many others, can be laid out and their outcomes predicted⁶. A savvy trader can use game theory to make a profit in the stock market by visualizing the future probability of their future trades based on their history and assigning unmistakable probability of success⁵. This can help optimize their strategy and place them in an optimal situation⁵.

Source: Conversation with Bing, 8/7/2023
(1) undefined. https://bing.com/search?q=.
(2) Understanding Game Theory For Stock Traders - YellowTunnel. https://yellowtunnel.com/blog/post/game-theory-for-capital-markets-and-stock-traders.
(3) Game Theory in Trading - Strategies, Stock Market & Finance Guide. https://therobusttrader.com/game-theory-in-trading/.
(4) How Game Theory Strategy Improves Decision Making - Investopedia. https://www.investopedia.com/articl...ced-game-theory-strategies-decisionmaking.asp.
(5) Exploiting Game Theory for Profit in the Stock Market : Networks Course .... https://blogs.cornell.edu/info2040/2012/09/18/exploiting-game-theory-for-profit-in-the-stock-market/.
(6) An Eye-Opening Look at Using “Game Theory” in the Markets. https://paradigmlife.net/eye-opening-look-using-game-theory-markets/.

 

[ETJ]

If you can still find a copy. They were big on chaos theory, game theory, and machine learning.

1. The Predictors: How a Band of Maverick Physicists Used Chaos Theory to Trade Their Way to a Fortune on Wall Street. Macmillan, 2000

Just looked at Amazon are there is an ample supply of used copies.

 

[murray t turtle]

Does anybody here use game theory for trading? If so, how can one put it to use?

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SOME of it is bad baloney, so dont eat that part.
Stag[big game] hunt or rabbit hunt problem is more full of holes than any target range.
Its not really a problem@ all, dont shoot rabbits on deer hunt;
nor is deer hunting a group sport unless the hunters want it that way.
Trading , like hunting cant really be predicted;
but a huge # of things can help.
Most any wildlife[deer, doves , rabbits] move better early + late; reading helps. Helps the hunters, not the wildlife LOL