Awesome explanation. I've always heard traders reference a correlation to physics and financial markets and this helped me understand it in an easy way. Thank you!
As much intriguing and exciting avenues these developments have opened up, sadly we need to understand the how much we've cracked the Wall Street till now. Movement of prices and parameters are but seemingly random and there are qualitative factors to be taken into account. The irony is that Myron Scholes, the living of the legendary pair behind the said famous equation had already involved himself in two great financial crises: the Russian scandal of 1998 and the 2008 meltdown. It's important we focus on the limits to this approach, because the consequences of error are grave and not just a theoretical embarrassment; ordinary people end up losing their life savings and investments. Hopefully we integrate multidisciplinary insights into deepening our understanding of how evolving financial markets work. Btw great video.
The stock market is not inherently random, as the success of algo trading firms shows. There are, in fact, many exploitable patterns which can be regularized for predictable entries and exits. Personally, I'm a fan of smoothed oscillating models.
If space is given by an three dimensional real (uncountable set) coordinates is it true that events would still necessarily recur? That ideas seems not necessary because at each "interaction of recurrence" the "atoms" may change its positions each time smaller fractions just like fractals. To be honest I am not a mathematician (nor a physicists) and I do believe real numbers are not real at all. I am an finitist like Wittingstein. I do know some quantum physics theories do imply space is not infitely dividable and eletrons do orbit atom nucleous on quantized steps.
Jim simons also made money in stocks using mathematics. if you know what mathematical model did he used and how he used it, can you make a video about it
@@notonlyscience came to your video from numberphile's jim simon interview. This was an excellent explaination of the hints of physics that Jim Simon mentioned
no smart money uses positively correlated volatility expansions, and estimate ranges of probability and accept that price is a stochastic process not rely off patterns like us monkies, just look at the hedge funds that print huge returns, they hire quants not technical analyst smart money monkies
Increasing GDP is not increasing Wealth it is only increasing Cash Flow. What is Net Domestic Product, NDP. Economists do not talk about that. Economists treat air conditioners like bananas. Both get added to GDP when purchased, but you know a banana won't last long. The air conditioner should take years to wear out. What happens to the depreciation? What happened to the depreciation of the 200,000,000 cars that were in the US in 1994? We are listening to economists who can't do algebra. NDP = GDP - Dcap [Western economic calculation] NDP = GDP - (Dcap + Dcon) [reality] Dcap: Depreciation of Capital Goods Dcon: Depreciation of Durable Consumer Goods GDP: Grossly Distorted Propaganda
Damn. This cross-discipline application of concepts is so fascinating!
Awesome explanation. I've always heard traders reference a correlation to physics and financial markets and this helped me understand it in an easy way. Thank you!
Glad it was helpful! Stay tuned! More videos are coming ;)
I'm physics engineer and I want to apply my analytical skills to market science. Thanks for you contents, you have a new subscriber.
As much intriguing and exciting avenues these developments have opened up, sadly we need to understand the how much we've cracked the Wall Street till now. Movement of prices and parameters are but seemingly random and there are qualitative factors to be taken into account. The irony is that Myron Scholes, the living of the legendary pair behind the said famous equation had already involved himself in two great financial crises: the Russian scandal of 1998 and the 2008 meltdown. It's important we focus on the limits to this approach, because the consequences of error are grave and not just a theoretical embarrassment; ordinary people end up losing their life savings and investments. Hopefully we integrate multidisciplinary insights into deepening our understanding of how evolving financial markets work. Btw great video.
very god. i'm statistics, i do ECL in baks, and now i transfer knowlenger economics in phisics. congratulations!
Speaking of finace! I feel like I have found an undervalued stock. Your channel!😁 Keep up the great work!
This explanation is awesome! Finally brownian motion is being de-mystified a little for me, thank you.
You’re doing excellent work bro, huge fan of your channel keep the videos coming
Thanks! Will do!
The stock market is not inherently random, as the success of algo trading firms shows. There are, in fact, many exploitable patterns which can be regularized for predictable entries and exits. Personally, I'm a fan of smoothed oscillating models.
nah geometric browninan motion is correct you monkey
If space is given by an three dimensional real (uncountable set) coordinates is it true that events would still necessarily recur? That ideas seems not necessary because at each "interaction of recurrence" the "atoms" may change its positions each time smaller fractions just like fractals. To be honest I am not a mathematician (nor a physicists) and I do believe real numbers are not real at all. I am an finitist like Wittingstein. I do know some quantum physics theories do imply space is not infitely dividable and eletrons do orbit atom nucleous on quantized steps.
Thanks for the video.
100th subscriber here, I enjoyed the explanation and look forward to more videos to come.
Awesome, thank you!
Jim simons also made money in stocks using mathematics.
if you know what mathematical model did he used and how he used it, can you make a video about it
Simons is an absolutely brilliant mathematician and he's definitely on my list. Thanks for the suggestion ;)
@@notonlyscience came to your video from numberphile's jim simon interview. This was an excellent explaination of the hints of physics that Jim Simon mentioned
😮😮😮 Wow, amazing content
thanks!!
Fantastic!!
Stocks go up. That’s not random.
Then explain the housing market in 08
Markets do show a clear pattern. That is why smart money knows how to manipulate it and everyday Joe is being taken for a ride.
no smart money uses positively correlated volatility expansions, and estimate ranges of probability and accept that price is a stochastic process not rely off patterns like us monkies, just look at the hedge funds that print huge returns, they hire quants not technical analyst smart money monkies
Keep it up buddy. You're doing great 👍👍
Thanks a ton
You guys didn’t crack anything, mathematicians did THAT.
Increasing GDP is not increasing Wealth it is only increasing Cash Flow. What is Net Domestic Product, NDP. Economists do not talk about that.
Economists treat air conditioners like bananas. Both get added to GDP when purchased, but you know a banana won't last long. The air conditioner should take years to wear out. What happens to the depreciation? What happened to the depreciation of the 200,000,000 cars that were in the US in 1994?
We are listening to economists who can't do algebra.
NDP = GDP - Dcap [Western economic calculation]
NDP = GDP - (Dcap + Dcon) [reality]
Dcap: Depreciation of Capital Goods
Dcon: Depreciation of Durable Consumer Goods
GDP: Grossly Distorted Propaganda
Not all economists. Look for Austrian Economics.
Sure, but what happened to en.wikipedia.org/wiki/Long-Term_Capital_Management ? they went bust.