I wanted to get some oppinons and ideas from the ET community. Gaming theory, do you use it in your strategy? If so I want to hear about it.. thanks in advance..
Upon inspection, the coin was indeed a fair one. It wasn't the absence of memory or apparent random nature that gave the beguiling coin its edge though. It was the belief of the outcome by those choosing to flip it.
and not 'gaming theory'... Even poker is hard to tackle realistically using game theory and you want to tackle the financial markets? Keep dreaming...
Well thanks for nothing grumpy... The fact you stopped dreaming makes me wonder how long you will be around.
The value of game theory for trading is not so much that you can calculate examples, but more that you have a basic understanding of how equilibria are found (or not). It is not that important for you to calculate what spread a MM should be quoting theoretically, but to know how this question is dealt with in reality, whether a given MM understands it or not. Those who don't adjust their spread accordingly disappear. Just like those animals who don't use the "fittest" strategies disappear without reproducing.
Bullshitters like yourself do not last even as long as most people with a sound approach to markets like myself. Keep bullshitting... err... dreaming. Buzzwords which you obviously even do not understand are no substitute for a profitable strategy. I spent many months working on the optimal strategy for draw poker, so I know what I am talking about, you don't... and I don't think you will ever do.
I completely concur, I'm wondering as the market participants become more and more automated would the need to find the optimal quote slowly increase as there becomes less humans to unbalance an equilibria with emotion. The eqilibria being based on the automated systems' strict formulas for risk vs. reward. in theory..