Creating an empowering trading metaphor

Discussion in 'Psychology' started by trend_guy, May 2, 2003.

  1. I do see it as an ocean with daily tides, which bring in or out the thousands of different varieties of marine life. Each one needs to be caught a little differently, but they basically all come in or out with the same tides.
  2. A metaphor must not be taken for profound reality or there will be one day deception. For example for my model I use the field and quantumic like effects but I warned that it is just metaphores and that one must rather understand that the true reality has more to do with economic principle of optimality.

    9. Field and quantumic like effects

    Our model did not use, as hypothesis foundation, any analogy with physical model like action-reaction law, flow entropic model or quantum mechanics etc, since an analogy is just a shortcut thinking for black box modeling before a white box modeling (causal) could eventually be discovered - if there is any for you can always presuppose some cause but never be able to get any output coherent with reality. We claimed to have found such a white box model and that it exhibits strange behaviors like duality and field effect, discretionary levels, spin and feynman like effect as an analogy with quantum mechanics. We will detail those points in some articles so we will only briefly describe them here.

    Beware that this analogy is just a metaphore and has not to be generalised on physical level because there is no proof of such generalities. We don't claim abusively like many that market follows some universal "natural law": we have built a causal model based on a rational basis which has nothing to do with quantum physics so we didn't presuppose any of these quantumic effects. We just observed them thanks to our new model: without this model it would be impossible to be aware of them that's one of the interest of a theorical model in general: explaining present phenomenas and discovering new ones which can then simplify the prediction of reality details thanks to this new acquired knowledge. In our case this help us to refine the simple rule of local extremum so as to pinpoint the exact top or bottom of the market with astonishing precision (in Quantum Mechanics Feynman formula is also considered one of the best achievement in term of precision in physical calculation).

    - Duality and field effect: there is only one market "particle" so that future and spot are sort of dual and appearant manifestations of a single "reality". It is the same for scales. The scales are not different realities it is different zoomed plan of the same city.

    In practice this means for example that the projection line target of the future chart will have direct impact on the real spot or that upper scale will act as if there was an external force from upper scale acting on lower scale - it is just a metaphore.

    - Spin like effect is about the vector or direction that can be positive or negative so that in our model the market can follow a clock-path or a counter-clock path. This should correspond to the concept of retracement in time and price of the ganntists.

    - Feynman-like effect it is very frequent and can be very spectacular. Like in Quantum Mechanics it behaves as if future is known by advance: for example when the market follows a bullish path on a branch it does so as if it was aware of the other bearish branch so that before arriving to the maximum target it will turn back at a point just before as if it knows there would be a correction at this top and so truncates the theorical top and corrects immediatly. Next session this theorical top will constitute a potential break zone for establishment of a new bullish trend.

    When there is no local extremum before time unit 9 (normal end of time cycle in our framework), Feynman-like effect will occur at time unit 10.
  3. "Trading means never having to say you're sorry."

    from Love of Money Story
  4. Here's a metaphor:

    You own a casino. Only in your casino you can kick out people when they start to win (cut losses) and force people to stay when they lose (let winners run). In your casino you control how many people come in and out (pick when to trade). Your commissions, data feed, etc. are you costs of keeping up your building and employees.
  5. Go on with this metaphor and perhaps you will discover my model :D

  6. jorgemb


    Love your metaphor. Very on the money.

    #10     May 7, 2003