Intuition Amplifiers 2
- Thread starter MAESTRO
- Start date
I read somewhere paper can only be folded 7 times. I tried it out with a legal size sheet and around 6 folds it was more like a big ball and wouldn't fold anymore.
folding a paper 7 times: doesn't this depends on the thickness of the paper , and the surface area of it ?
I think what happens is that the part of the sheet on the outer most of the fold has to curve around all the planes stacked in between. Another way to see: take a stack of 200 sheets of paper and fold in half, the innermost will be sticking out, the outermost will be stretched around the inner sheets, and the ones in between will make a diagonal line. I suppose if paper had more elasticity, the outermost parts could stretch to allow more folding. But that's just my guess, the real reason could be something different.
Hello MAESTRO,
To tie Intuition Amplifiers back to trading, would you say they help identify ineficient behaviour in market participants (i.e. "price going too far to fast") and therefore trading opportunities?
I've also researched similar approaches based on flocking behaviour (http://en.wikipedia.org/wiki/Flocking_(behavior)) and symetry breaking (http://en.wikipedia.org/wiki/Symmetry_breaking) and I think it makes a lot of sense.
Since you use the order book to build the amplifiers, how long do the trading opportunities last? Would it be possible to use your amplifiers to swing trade (i.e. holding time in days) or are you "condemned" to shorter timeframes (i.e. holding time in minutes)?
This is an excellent question! Any market analysis system can only process the information that is currently available and rely on what is considered more or less stable patterns established in the past to anticipate what might happen in the future. The IA systems are not different. We process the information extracted from the book and classify it using previously observed behavioral patterns of the traders that we consider to be the most stable patterns one can use for assessing the potential profit opportunities. So, the accuracy of the anticipated price moves depends whether or not the new and significant behavioral pattern has been observed since the time when a trader has already committed to a trade. Obviously, the longer the projected time a trader chooses to use the greater the probability that some new and potentially significant event happens and changes the previously generated outlook. In our experience the accuracy of the IA based systems is the best in the short term. The average trade duration that most of our systems generate is between 5 â 10 minutes. However, we do sometimes get into longer trades if the conditions do not change or if the newly emerged patterns prompting us to continue with the existing positions. So, the answer is: The sweet spot of the IA based systems is the Intraday Trading based on multiple relatively short duration trades.