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/biz/ - Business & Finance

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File: 38 KB, 350x307, bodeplot.png [View same] [iqdb] [saucenao] [google]
11245923 No.11245923 [Reply] [Original]

Anyone ever notice that the payoff functions for options look like a bode plot for circuits? Now I'm pretty fucking autistic but I wanted to ask and see if anyone's traded options or put together a risk management strategy based on the laws of electricity and magnetism before.

Bonus points for sparkies; Edison eternally btfo'd this thread taken over by Tesla time travel conspiracies (((mods))) will slide this and MKUltra sleeper agents will appear in your closet at 3 a.m. unless you reply, "Based Americhads will save crypto."

>> No.11245928

>>11245923
Holy shit you are boring as fuck.
How does it feel to be this virgin OP?

>> No.11245935

>>11245928
Haven't killed myself yet and the wagelife isn't too painful so I'd say a perfect 5 outta 7.

>> No.11245942

>>11245923
Yes the EM wave risk return strategy is used by MMs to pin prices to ensure large returns with minimal risk. If delta hedged properly, they can see high end returns that are usually only seen in arbitrage opportunities. This is also known as statistical arbitrage as it is not a true arbitrage, but one from a phenomenon model. Retail can try to emulate it, but a properly model of the volatility curve is needed for the equity.

>> No.11245955
File: 126 KB, 402x398, 4.png [View same] [iqdb] [saucenao] [google]
11245955

>>11245923
>a risk management strategy based on the laws of electricity and magnetism
you can't be fucking serious

>> No.11245960

>>11245942
Nice. Thanks for filling my google tabs with autistic joy for the next week. Godbless.

>>11245955
Never going to /make it/

>> No.11245971

>>11245960
Well at least it's better than a risk management strategy based on astrology and tarot, though not by much. Good luck anon

>> No.11245975

>>11245960
Best of luck. Stocks is pretty crowded though, but if you can make a working model, it is one of the closest things to free money out there.

>> No.11246000

>>11245960
Also I should say the first sentence of >>11245942 is all nonsense. After that I'm actually talking about a real technique though. I'm not joking about the model.

>> No.11246012

>>11246000
check'd i'll build the model and be the first person to land on mars.

>> No.11246039

>>11246012
Best of luck. If you can honestly make one, you're on your way to milking the stock market. Millions a year.

>> No.11246492

>>11245923
Payoff does seem to be a TI system, the problem is that trading is inherently unpredictable because traders are emotional
Good luck though

>> No.11246507

>>11245928
Fuck you, OP is cool as fuck for asking this question.

I’m actually going to look into this OP, ty

>> No.11246524

>>11245923
Baby's first control theory class

>> No.11246540

>>11245923
based ameriheads will save crypto

eli5 I'm a chemE

>> No.11246545

>>11245928
Was Claude Shannon boring for linking boolean algebra with electric circuits?

>> No.11246563

>>11245923
anon can you put me on your email subscriber list? keep me updated

>> No.11246576

>>11246492
I can stay irrational longer than the market can stay solvent.
>>11246524
I actually did apply laplace transforms to bitmex before. Works until it doesn't.
>>11246540
Options have fixed risk with unlimited profit (or other way around if you're cool like that). Filter circuits are fixed gain but then drop off after a certain frequency. Basically the two graphs are invariants of each other, which maybe means we can do the same maths on them. Maybe.
>>11246545
To be fair, I wouldn't party with shannon. Dude would probably spill everyone's drink but then say, "It's ok entropy was gonna do it anyways lel."
>>11246563
I'll post an update if I'm not rekt.

>> No.11246591

>>11246576
no anon don't post on 4chan! I want to be among the first to know so I can make the money before it gets patched

>> No.11246605
File: 23 KB, 365x351, fuiwdwytm.jpg [View same] [iqdb] [saucenao] [google]
11246605

>>11246591

>> No.11246800

>>11246605
I'll pay you a percentage of my gains

>> No.11246888

based and redpilled

>> No.11247691

>>11246576
>Options have fixed risk with unlimited profit (or other way around if you're cool like that). Filter circuits are fixed gain but then drop off after a certain frequency. Basically the two graphs are invariants of each other, which maybe means we can do the same maths on them. Maybe.

you should read about black-scholes are how they got blown the fuck out at their little hedge fund