The Renaissance Technologies model has been resolved.

Discussion in 'Journals' started by LargeTrader, Apr 5, 2024.

  1. A few months ago, I managed to identify a strong determinism in price formation, leading to a 70% advantage. After some time, I attributed this footprint to major liquidity providers. Therefore, understanding their modus operandi allows for predictability windows. The challenging part was engineering a profitable strategy. Eventually, I succeeded using probability theory, proving that it's possible to profit from financial markets. In my previous post (https://www.elitetrader.com/et/threads/delirium.378771/), which I encourage you to review, I discussed key market players, the extreme difficulty, and some findings regarding the problem. However, I hadn't definitively resolved the model used by major independent LPs. Initially, I thought of something "physiologically deterministic" attributed to chaos theory, but in reality, it's determinism caused by liquidity providers. Thus, I had to delve into the extensive field of probability theory. Ultimately, the model attributable to RenTec or TGS has been resolved, and I've decided to propose a live demonstration on two financial instruments: crude oil commodities and the S&P 500 stock index.

    The model has not yet reached the state of the art, but for now, it is sufficient to demonstrate that consistent profits can be made without incurring significant losses. The demonstration is expected to begin on Monday with the opening of the European markets and will conclude with the closure of the American markets. I still need to decide how to share the demonstration, but it will likely be on Twitch.
     
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  2. RedDuke

    RedDuke

    Good luck. Looking forward to see your results here!!!
     
    themickey and MarkBrown like this.
  3. MarkBrown

    MarkBrown

  4. NoahA

    NoahA

    So will you be streaming your actual entries and exits in real time? Would this allow others to follow your trades? And how would this affect the expected outcome?
     
  5. Now just add in context and experience(screen time) and you will be set.
     
  6. wxytrader

    wxytrader

    I've been posting here that the market is determined for like months like since I got here. Welcome to the party late. Renaissance technology basically used Elliott wave which determines the price...not the market. Nobody's saying EW is a perfect system but it's a system that demonstrates future price is determined by historical price.
     
  7. taowave

    taowave

    So Simons uses the same framework,i.e. Elliot Wave as you...

    LOL!!!!!!!!!!!!!!!!


     
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  8. wxytrader

    wxytrader

    Actually I think they boiled it down to simple pattern recognition and fractals.
     
  9. taowave

    taowave

    Yeah,I hear Simons is heavily influenced by Bill Williams and uses his "Alligator" methodology


     
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  10. schizo

    schizo

    Oh great, so Elliott wave and Markov chain share the same bed, eh?
     
    #10     Apr 5, 2024
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