Entropy of an economic system

Discussion in 'Technical Analysis' started by stock_trad3r, Aug 14, 2007.

  1. how to computet the entropy of an economic system and tendency to entropy/disorder
  2. Tsallis entropy as applied to the stock market:

    Scroll to eqs 3 & 11. Not a simple calculation. Also, they look at deep out of the money options skewness to determine possible crash potential.


    Make sure to post the graph if you are able to replicate their work for today's market.