Inter-Pattern Speculation

Download or read book Inter-Pattern Speculation written by Damien Challet and published by . This book was released on 2008 with total page pages. Available in PDF, EPUB and Kindle. Book excerpt: A new simple model of financial market is proposed, based on the sequential and inter-temporal nature of trader-trader interaction, and on a new simple trading strategy space. In this pattern-based speculation model, the traders open, hold and close their positions explicitly. Information ecology is strikingly similar to that of the minority game which suggest to reinterpret the latter as a model of synchronisation of predictability exploitation. Naive and sophisticated agents are shown to give rise to very different phenomenology.