Tag Archives: Physics

Are physics formulas too complicated for automated trading

Are physics models sufficient for algorithmic trading? When I posted this on my Facebook profile, here are some of the commentary I got:

 

I know all that I still lose in the stock market!


stocks markets are run by understanding simple street wise business sense…. not this sh*t! mostly because those formulas are fu** all to do with markets!…

The magnetic field sometimes works fine!

 

With the shoddy recent reports of Quantopian, it is quite true that you cannot let computer scientists and mathematicians run a portfolio when they don’t understand how the markets flow.

 

On the other hand, you could report that recent market making research paper I posted last week shows some validity when trading scenarios around mean reversion may be valid as well. Just call me confused on this one.

 

Check out this chart here.

 

As for me, you will be surprised how simple my indicators are for timing forex trades. This includes simple moving average, min max (instead of support and resistance), and ATR for volatility, stop losses, and take profit. It is not that simple but easier than physics.

 

I am hoping to get these implemented over coming days for the Quant Analytics section.

 

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You can get more info here

 

Once I test this in my live trading environment with Dukascopy Jforex, you can expect a bump in the monthly rate fairly quickly. As a result, you may want to jump on this rate NOW.

 

Get more benefits here.

 

 

Thanks

Bryan

 

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Apply physics math problems with Python

Apply physics math problems with Python

A good intro tutorial for those wanting to learn the language to apply physics and math to their solutions

http://www.codeproject.com/Articles/1087025/Using-Python-to-Solve-Computational-Physics-Proble

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BEST PAID quant study physics

Why BEST quant studies physics

I just posted a video on why physicists are wanted by hedge funds and other financial trading operations. Based on how they think and are taught in school, they are pretty well the profession that most high paying Quant shops want for their research capabilities. Many will argue it but it’s a fact Jack.

 

Watch this video here

 

Hedging demos in C++ Meetup

I have my upcoming hedging demos to be done in C++ TONIGHT at 8 PM Eastern standard time! Do realize that this online event will be hosted on Google Hangout via YouTube. I will post the stream link within an hour of the start time so hang tight.

 

Demo info is here

This video will be recorded but removed once complete. This means it will only be available to my Quant Elite members so there will be no public video playback. It is one of the many benefits that I host for my members.

 

As I move into more sensitive and secretive areas of my research in high-frequency trading, these sort of topics will become more exclusive for those that are willing to go behind the pay wall. For instance, my next area of research will involve order books used by the highly secretive trading Industry. I doubt I’ll ever talk about it again or even mention it when asked.

 

Bryan

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Why BEST quant studies physics

Why BEST quant studies physics

Watch this video to see why hedge funds only prefer those who study PHDs from physics

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Physics PHD is valuable for quant research

Physics PHD is most valuable for quant research

Many people ask me what sort of major should they acquire while at University for a Quant research career. What I have seen, it is always a physics major. I also found recently a Goldman Sachs recruiting video that confirms what banks want which confirms my theory.

See see this video here

 

Human education hold you back for trading PROFIT potential

As being no stranger to controversy, I posted a video on what I think in how human trading can really hold your potential back. If you stick with automated trading, you will be able to maximize your opportunities in various capabilities you never thought of.

 

Go here to see my latest video on this topic

 

I am now starting to work on a modified Karen Super Trader Simulink model with full automation demos coming soon. Source code will also be available to all my Quant Elite members.

 

As usual thanks for reading

Bryan

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Physics PHD is most valuable for quant research

Physics PHD is most valuable for quant research

There seems to be a misconception on what kind of PHD degrees are need for TRUE quant research. This recruiting video showcases Goldman Sachs gives preference to Physics for the way they apply math into trading. I can also confirm that is pretty well for all lucrative positions in a lot of finance jobs.

Don’t blame me after watching this OK?

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Why hedge funds investment banks prop shops want physics to apply math principles to their quant algo research trading?

Why hedge funds investment banks prop shops want physics to apply math principles to their quant algo research trading?

As  I learn through Khan Acadeym for things like work, acceleration, particle movement, I thought this was very similar characteristics of quant research. Personally I do see a relationship but others including London Quant don’t quite agree. I want to see your opinion. so comment below.

LQ says they physcists are wanted to because they know how to build models and see through their faults as well. I find this concept interesting but everyone seems to disagree there is no relationship. What do you think?
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There are two camps.

The Dermans and the Sorrettes

The Dermans think that the model will break down due to the human behavior feedback loop.

The Sorrettes think that the model will approximate overall phase shifting dynamics.

I think that both are right.  That is why I believe that chaos theory and tangential themes are closer to modeling the market.
 

In terms of physics models, there is power in analogies and a weakness too when applied to finance.  But techniques in physics for understand complex systems, like quantum levels, are useful in phase transitions in complex dynamic systems - aka the market.



Sincerely,
Paul Cottrell, MBA, ABD

 

 

This links may be useful for some of my learning
https://www.quantnet.com/threads/applications-of-greens-and-stokes-theorems-in-finance.3388/

I really wish math gurus could speak plain English instead of this useless mumbo jumbo
http://mathoverflow.net/questions/123227/is-there-a-statistical-interpretation-of-greens-theorem-stokes-theorem-or-th

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Long-term performance of the SwissQuantum quantum key distribution network in a field environment (New Journal of Physics)

Long-term performance of the SwissQuantum quantum key distribution network in a field environment (New Journal of Physics)

 

New Journal of Physics

[1] Bennett C H and Brassard G 1984 Quantum cryptography: public key distribution and coin tossing Proc. IEEE Int. Conf. on Computers, Systems and Signal Processing (Bangalore: Institute of Electrical and Electronics Engineers)…

http://www.titantrading.com/in-the-news/111201-conquering-big-data-on-the-web.html

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Abstract

In this paper, we report on the performance of the SwissQuantum quantum key distribution (QKD) network. The network was installed in the Geneva metropolitan area and ran for more than one-and-a-half years, from the end of March 2009 to the beginning of January 2011. The main goal of this experiment was to test the reliability of the quantum layer over a long period of time in a production environment. A key management layer has been developed to manage the key between the three nodes of the network. This QKD-secure network was utilized by end-users through an application layer.

 

More on understanding of QUANTUM NETWORK, please visit this site –

http://www.dtic.mil/cgi-bin/GetTRDoc?Location=U2&doc=GetTRDoc.pdf&AD=ADA471450

Please note: you need strong physics, EE, and some CS to have good understanding of it.

Good fun reading, not sure exactly yet how it can help our trading systems yet, but promising stuff, even though it is an application in the defense sector.

 

Its main purpose is originally proposed to design and build the world’s first Quantum
Network, delivering end-to-end network security via highspeed
Quantum Key Distribution (QKD), and testing that
Network against sophisticated eavesdropping attacks.

 

 

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