how quantum theory, game theory and observation theory explain intra-day trading activity in electronic markets
overview of contents of section
Australian futures exchange rules impose "orderly market" restrictions on market and limit orders. Scaling, splitting and iceberg orders, are used to avoid the rules. Electronic trading systems enable scaling and auto-replenishment at electronic speeds. Large scale "gaming" tactics. Understand "game theory". A business game. Any game can involve both participants and observers, participation and observation .. a full appreciation of "game theory" and trading .. etc ..
Explanations of market behaviour and tactics can be found in thousands of books on "sports strategies" and "game tactics". Any game is a "blended cocktail" of the tactics of both sides. No two games are ever alike. Thousands of hours of video analysis of individual games are interesting to the spectator, useless to the player, except to correct mistakes. The next game is never the same as the previous. Analysis tries to "unblend the cocktail". Books on trading don't cover it. And yet it's so well covered in the many books on coaching "skills, tactics, strategies". Technical analysis uses the cocktail as a guide to the next game. Serious players get out their book of strategies and plan the next game. So does Sun Tzu
this section includes ..
Theory of observation and methods of observation with electronic trading
Invisible dimensions of an electronic market. How to see them.
Examination of quantum theory and game theory in relation to electronic trading.
The different behaviours of hitters, sitters, observers and those waiting to enter.
When large sitters begin peeling out of the queue and going to market.
The one game where contestants change sides the instant they enter the game.
Why price ebbs and flows with the imbalanced desires of large traders and hedge funds.
How to see the vacuum. What happens when the buying and selling pressures cease.
