01302017, 01:55 PM



Location: Russia
30 posts, read 12,201 times
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In math there is a concept "Fourier analysis"
The meaning of the following:
You spread out the schedule on the exchange of price movement in the "Fourier series".
Each series  is a harmonic frequency, which shows the investment period.
You buy and sell shares at these harmonic frequencies, you get a million dollars ...
 
Some hardware vendors even include a "Fourier analysis" in its program to sell more expensive.
==================================
In fact, it will not work
(It can be proved mathematically)
It's a pity!

01302017, 02:48 PM



Location: New England
425 posts, read 110,857 times
Reputation: 397


The need is to remove risk, the methodology is to be close to the market physically, and to be able to respond to changes quickly. Merely skimming off a trend can be very valuable. A few milliseconds ahead of the public, and you can clean up. Locations near exchange servers are very expensive, and not available to the public. The last great mathematical attempt to remove risk from investments almost took down the worlds economy.

01302017, 03:40 PM



Location: Russia
30 posts, read 12,201 times
Reputation: 22


Quote:
Originally Posted by functionofx
The need is to remove risk, the methodology is to be close to the market physically, and to be able to respond to changes quickly. Merely skimming off a trend can be very valuable. A few milliseconds ahead of the public, and you can clean up. Locations near exchange servers are very expensive, and not available to the public. The last great mathematical attempt to remove risk from investments almost took down the worlds economy.

No, the question here is absolutely mathematical.
You are talking about the technical analysis of stock markets.
There are many: EMA, MACD, oscillators, Elliott waves, candlestick ...
as well as given me "Fourier analysis"

I contend that "Fourier analysis" would not work.
This can be proved mathematically and easy

01302017, 03:56 PM



Location: San Antonio/Houston
27,606 posts, read 41,779,990 times
Reputation: 69433


I don't think there is math or formula behind it.
What you need is to have a good understanding of the markets, their trends and how the markets and individual stocks react to news. You need to have the time to follow the financial news and your stock trades. You need to start your day by learning what news is affecting the markets, and what economic reports are being released, and when. Then take some time to read the news that has caused the price increase, and decide if you believe the jump in price is justified.
It's a time and patience investment. And lots of knowledge.
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01302017, 04:18 PM



Location: Russia
30 posts, read 12,201 times
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Quote:
Originally Posted by elnina
I don't think there is math or formula behind it...

It's right.
But sellers still sell trading systems, which are integrated in the "Fourier analysis".
I just can mathematically prove that the system will not work

01302017, 04:37 PM



Location: New England
425 posts, read 110,857 times
Reputation: 397


Quote:
Originally Posted by AGK67
No, the question here is absolutely mathematical.
You are talking about the technical analysis of stock markets.
There are many: EMA, MACD, oscillators, Elliott waves, candlestick ...
as well as given me "Fourier analysis"

I contend that "Fourier analysis" would not work.
This can be proved mathematically and easy

You were given an answer, but don't like it. Called the Black–Scholes equation. The formula is below attached as a thumbnail, expressed as a partial differential equation. The story about how it nearly destroyed our economy is here  https://www.theguardian.com/science/...creditcrunch
A discussion of it is here  The Black Scholes Equation: How Math Affects Our Economy  Advanced Math TutoringAdvanced Math Tutoring
If you understand what an FFT is, you should be able to understand this being a member of the very famous series of related equations which won it's authors a Nobel prize. http://www.nobelprize.org/nobel_priz...press.html]The Prize in Economic Sciences 1997  Press Release
This stuff is old. Application is rough as it is well understood, best used if you are very very proximal physically to a market server with very very fast hardware.

01302017, 05:02 PM



Location: Russia
30 posts, read 12,201 times
Reputation: 22


Fast Fourier Transform, as a special case of the discrete Fourier transform ... which are used in numerical methods.

But the answer is simple and it is not necessary to spend money for the Nobel Prize.
any student of the 2nd year of high school USSR knows
1. Arrange to "Fourier series" can only be a periodic function.
Only in the "Fourier series" can be identified harmonic, which is the idea, should give investment periods ...
In other words  a discrete spectrum
2. The movement of stock prices is not a periodic function (in other words  the period tends to infinity)
Therefore, it can be expanded only in "The Fourier Integral", which is impossible to distinguish the harmonic
In other words  a continuous spectrum

That's all solution.

01312017, 04:37 AM



Location: New England
425 posts, read 110,857 times
Reputation: 397


Quote:
Originally Posted by AGK67
Fast Fourier Transform, as a special case of the discrete Fourier transform ... which are used in numerical methods.

But the answer is simple and it is not necessary to spend money for the Nobel Prize.
any student of the 2nd year of high school USSR knows
1. Arrange to "Fourier series" can only be a periodic function.
Only in the "Fourier series" can be identified harmonic, which is the idea, should give investment periods ...
In other words  a discrete spectrum
2. The movement of stock prices is not a periodic function (in other words  the period tends to infinity)
Therefore, it can be expanded only in "The Fourier Integral", which is impossible to distinguish the harmonic
In other words  a continuous spectrum

That's all solution.

No, the signal source is too complex and not predictable. Hundreds of millions of transactions per second, made half by artificial intelligence programs, and at varying distances from the main server, with hundreds of thousands of discrete sources producing random signals and nonrandom signals. The percentage that is truly random exceeds 20%. An FFT can't make intelligence of nonrepeating, nonpredictable randomness. It isn't a repeating, or natural signal, it isn't a signal of a system which requires self consistency. The correct solution, and the one used for decades is well understood, and it is the calculation of risk on any trade. The better risk is understood and mitigated, the more profitable a transaction can be made.

01312017, 05:44 AM



Location: Russia
30 posts, read 12,201 times
Reputation: 22


Quote:
Originally Posted by functionofx
...The correct solution...

if it was, then the owner of any of your wonderful program, would become a millionaire.
Where are they?

Artificial intelligence..
It was fashionable in the late '90s, today nobody cares, because lost all the money.
Will not work because:
 The movement of share prices  this is a random phenomenon.
 There is no trend (trend can be seen when it is already over)
 Mathematical solutions are "to solve the problem within the framework of a model with an acceptable level of profitability and risk" .. But the market does not understand these concepts

I worked on the Moscow Stock Exchange 19951998 year.
Market shares and government bonds.
I am a programmer, writing programs of technical analysis.
So what about the stock trading issues we can discuss.
You really worked on the Exchange?

As for Fourier analysis, I gave an answer and I will not discuss it more
I wonder when I will give the right to insert a picture and a video on a forum?
Last edited by AGK67; 01312017 at 06:07 AM..

01312017, 06:58 AM



Location: New England
425 posts, read 110,857 times
Reputation: 397


Quote:
Originally Posted by AGK67
if it was, then the owner of any of your wonderful program, would become a millionaire.
Where are they?
I wonder when I will give the right to insert a picture and a video on a forum?

There are quite a few, did you read the link?

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