Similarities in 'Electronic Trading' and 'An automated electronic roulette machine'

Following are some of the similarities in electronic trading and an automated electronic roulette machine. While observing, we find:



- Roulette Spinning = Trend



- Roulette Stopping = Range



- Roulette Speed = Volatility



- Roulette Frequency = Liquidity



Considering price fluctuation as an automated roulette machine for some time, we may note that the number of times the roulette wheel revolves in a particular day or month becomes the liquidity of a particular instrument.



The speed at which the wheel revolves, sometimes slow, sometimes fast become volatility.



And depending on whether the wheel is currently Spinning or Stopped, it may be considered as a Trend or a Range for that particular instrument.



Conclusion



New Perspective = Price moving in circles (cycles and phases) instead of mere straight lines.







Result



Less Stress

Less Addiction

Less Analysis Paralysis

Wiser system designs.

Embracing cycling and oscillators

Embracing Trading Psychology



(Full Article : Similarities in ‘Electronic Trading’ and ‘An Automated Electronic Roulette Machine’ )

by Abhinav Asthana via InformedTrades