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Low-entropy trading

Christopher Zapart

posted on 09 November 2010

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Talk slides presented at the Econophysics Colloquium 2010, November 4-6, Taipei, Taiwan. Three models rooted in econophysics, behavioural finance and machine learning are introduced: NeuroEntropy, NeuroIsing and NeuroWavelet. Based on these models plus intuition, the author shows results from profitable short-term trading using his own money. Hence the talk provides a positive example of an application of econophysics to real trading the NIKKEI 225 futures and options. In contrast with theoretical economics, which tells us how markets should behave, empirical econophysics describes how markets really work.

Discussion

First of all, it's just presentation slides, not an article.

You writes "extract entropy H(t) from xt". HOW do you extract entropy from x(t)?