Action, reaction, and the echoes of uncertainty:
the R&D we should be doing, and how that will contribute
to true efficiency in the marketplace
Richard Olsen challenges three received notions that mire the global economy in counter-productive habits that destroy value: that market prices in gross time tell us everything we need to know; that such information as we have is a trustworthy indicator of things to come; and that the chain of events in price evolution is orderly and self-correcting.
Olsen Ltd. has discovered and validated 17 new power laws that prove this firm’s long-held belief: much of the market’s volatility is invisible to casual, low-resolution analysis. While much work remains to be done, Olsen is taking steps to encourage the accumulation and analysis of very-high-resolution data to fuel sophisticated models that leverage the insights and power of the new scaling laws. With two strategic objectives: to increase return as a product of the predictive capacity of better trading models, and to counter the effect of inevitably irrational behavior by providing liquidity in the face of skewed pricing patterns…
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December 16th, 2008 | High frequency finance, News | RSS feed