Problem is time’s relative within the market.
Haven’t you guys read The (mis)behaviour of markets by Mandelbrot ?
What does Mandelbrot says about time in The (mis)behavior of market ?
In The (Mis)Behavior of Markets, Benoît Mandelbrot discusses time primarily in the context of financial markets, emphasizing how traditional models often fail to capture the complexity and irregularity of real-world market movements. He critiques conventional financial models, particularly those based on normal distributions and efficient market theories, for assuming a fixed, linear progression of time, which ignores the erratic, fractal-like nature of market behavior.
Mandelbrot introduces the concept of "trading time" or "fractal time", where time doesn't progress evenly as in traditional models (e.g., calendar time), but rather stretches and compresses in response to market activity. In periods of high volatility, events unfold more quickly—trading time accelerates. In contrast, during calm periods, trading time slows down. This reflects the non-linear and irregular nature of time in markets. According to him, financial markets exhibit characteristics similar to natural phenomena, which operate on fractal patterns.
This notion of fractal time implies that market movements are not smooth and continuous but instead can experience large jumps or extreme events, with certain periods seeing intense activity and others seeing almost none. It challenges the assumption of market predictability over uniform time intervals and highlights the importance of understanding the market's complex, often chaotic, behavior over time.
