Cyclemedic (@PyntyaVlad) header
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«Когда все думают что с тобой покончено, тогда и следует начать» Конрад Аденаурь

Odessa
Joined February 2019
Proverbs 19:21: "Many are the plans in the mind of a man, but it is the purpose of the Lord that will stand."
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«В тёмные времена хорошо видно светлых людей» Ремарк Э.М.
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A Boy was given permission to put his hand into a pitcher to get some filberts. But he took such a great fistful that he could not draw his hand out again. There he stood, unwilling to give up a single filbert and yet unable to get them all out at once. Vexed and disappointed he began to cry. "My boy," said his mother, "be satisfied with half the nuts you have taken and you will easily get your hand out. Then perhaps you may have some more filberts some other time." Do not attempt too much at once. Aesop.
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Power-Haus - Sergiu-Dan Muresan - Code Duello youtu.be/76wuSQ6zx78?si=i5Jq… via @YouTube
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If I were a trading algorithm designed to capitalize on various mindset traps, here's how I would approach it: 1. **Overconfidence Bias**: Detect when traders are overly confident by analyzing high trading volumes and price movements driven by sentiment rather than fundamentals. I'd take contrarian positions, betting on a market correction. 2. **Recency Bias**: Identify trends that traders assume will continue indefinitely because of recent performance. I'd calculate the likelihood of a trend reversal and position accordingly to profit from a return to the mean. 3. **Herd Behavior**: Monitor for signs of traders following the crowd, such as significant increases in trading volume and rapid price rises. I'd initially align with the trend but exit before the reversal when the herd pulls out. 4. **Loss Aversion**: Notice when traders hold onto losing positions to avoid accepting losses. By analyzing market data patterns, I could position myself to benefit from eventual sell-offs or sudden shifts when these positions are abandoned. 5. **Confirmation Bias**: Identify when traders only seek information that supports their preconceived notions. Using a comprehensive data set, I'd exploit overlooked opportunities that traders might miss due to their bias. 6. **Anchoring Effects**: Determine when traders fixate on certain prices as significant anchors. By understanding these anchor points, I can predict market responses when these levels are tested or breached. 7. **Emotional Reactions**: Quickly analyze market news or economic reports that cause emotional trading decisions. I'd distinguish between noise and impactful information, trading to profit from market overreactions and subsequent corrections. 8. **Overtrading**: Recognize patterns of excessive trading, often driven by boredom or a compulsion to act. By identifying these signals, I could exploit inefficiencies resulting from unnecessary trades. By systematically identifying and exploiting these psychological traps, my trading algorithm would aim for a strategic advantage over human traders prone to such biases. It's crucial to implement these strategies ethically to ensure fairness and transparency in trading practices.
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Moby - 'Extreme Ways' (Official Video) youtu.be/nBB2bPwKWVg?si=bA1R… via @YouTube
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