Commit 2d8134e1 authored by Rafael Garcia Leiva's avatar Rafael Garcia Leiva

Update README.md

parent 88a4ed03
A trading robot is a computer program that gets as input real time quotes from the stock markets, or foreign currency exchanges, and based on an algorithm decides how to invest money, in general by means of opening very short-time positions (what it is called day trading). Many of these robots are based on technical indicators, that is, metrics that are derived from current and past prices (like moving averages, or resistance levels) to predict future prices. It is an open question if it is possible to make any money using those robots, that is, if they have a positive mathematical expectancy that is is enough to cover the brokers commissions. We can study this problem with the aid of the theory of nescience. In order to do that, we have randomly selected 40 trading robots over a period of 6 years, and we have tested them (EUR/USD exchange over a period of one year - 2016, in intervals of five minutes, and a spread of 2 pips). In Figure Robots_Forex.jpg we can see the evolution of the nescience of these robots along those 6 years, and as we can see, nescience not only it does not decrease, but also, it increases. So, our theory of nescience suggests that the subject of Forex trading robots based on technical indicators can not be considered a scientific discipline.
# Finance
For more information, please refer to my book http://mathematicsunknown.com/
A trading robot is a computer program that gets as input real time quotes from
the stock markets, or foreign currency exchanges, and based on an algorithm
decides how to invest money, in general by means of opening very short-time
positions (what it is called day trading).
Many of these robots are based on technical indicators, that is, metrics that
are derived from current and past prices (like moving averages, or
resistance levels) to predict future prices.
It is an open question if it is possible to make any money using those robots,
that is, if they have a positive mathematical expectancy that is is enough
to cover the brokers commissions.
## Answer from the Theory of Nescience
We can study this problem with the aid of the theory of nescience. In order to
do that, we have randomly selected 40 trading robots over a period of 6 years,
and we have tested them (EUR/USD exchange over a period of one year - 2016,
in intervals of five minutes, and a spread of 2 pips).
In the next figure we can see the evolution of the nescience of these robots
along those 6 years:
[Nescience of Robots](https://gitlab.com/nescience/finance/blob/master/Robots_Forex.jpeg)
As we can see, nescience not only it does not decrease, but also, it increases.
So, our theory of nescience suggests that the subject of Forex trading robots
based on technical indicators can not be considered a scientific discipline.
For more information, please refer to my book [A Mathematical Theory of the Unknown](http://mathematicsunknown.com/)
Markdown is supported
0% or
You are about to add 0 people to the discussion. Proceed with caution.
Finish editing this message first!
Please register or to comment