Proposal for to participate in the production cooperative of researchers of financial markets.

[Kotera]

Proposal for to participate in the production cooperative of researchers of financial markets.



To understand the organization :



Production Cooperative ( gang ) - commercial organization created by the voluntary association of citizens on the basis of membership for the joint production and other economic activities, based on their personal labor participation . Production cooperative is an association of people who come together to solve problems that alone are difficult to solve .



Purpose Cooperative - Research and development of various algorithms which could be successfully used for trading on financial markets. Collaborative knowledge sharing for professional growth of all members of the cooperative.



Profit cooperative - as a result of a collaborative effort , everyone gets a copy of each working model developed cooperatively and makes a working model of what he wants at his own risk . Co-op does not prohibit participants do with the developed models that they want - to sell , to use in their own trade , and so on , there is only one limitation - not to spread ideas and models to share (ie, the Internet) . In the future , if the cooperative wants to unite legally possible sale results cooperative labor on behalf of the cooperative and the division of profits among the participants of the cooperative, in proportion to the number of members of the cooperative (ie, all equally ) .



Requirement for the participants of the cooperative - have a mathematical or physical education, no other restrictions . Member of the cooperative must be initiative , not the what - would sit and read the material posted by others , and to take no action (ie not work ) . Each member of the cooperative must inform yourself name, information about education and profession, and publish their own, at least one , the idea of ​​predicting financial markets (ie the idea of ​​automated trading system which you would like to make any difficulty (preferably in the form of notebook of MAthematica program)) .



That already exist for cooperative work :



1. Closed from public access phpbb forum the ability to post mathematical formulas in a format LaTeX.

2 . Live Chat closed from public access .

3 . Paid outsourcing programmers, physicists and mathematicians who , if necessary, can be rented for a reasonable fee.







All interested can write to this " kooperat1000000 (@) mail (dot) ru " email .



Best, Dmitry from Russia.

[deeds]

Dmitry, (and any others who would be kind of enough to comment)



This kind of proposal has surfaced here intermittently over the last few years.



I have to ask - is it not pretty fundamental that successful trading requires an 'edge' of some kind (some sort of insight or information), and an edge is only effective when concentrated in the hands of a few?



Isn't that the basic notion of efficiency and arbitrage?



It seems to me that gaining leverage, scale (where capacity allows it) or access would be the only reasons to share an edge.



What fair market compensation would a Kollectiv offer for true edge?

[Kotera]

I have to ask - is it not pretty fundamental that successful trading requires an 'edge' of some kind (some sort of insight or information), and an edge is only effective when concentrated in the hands of a few?

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I have been trading for a long time and spent a lot of time to search for scientific methods for prediction of financial markets. I only found a few methods that deal with not anything, but only nonstationary systems.These scientific methods can be found on the Internet almost anyone. So I think that the average traders in the upper limit, all the same, and use the same methods.Traders who are not using rigorous mathematical methods are not likely to be successful, such as the fact that they can look at the market as a stationary system.Using mathematical (not statistical, but physical) methods require a lot of work - for example, 100 pages of text containing formulas and difficult texts. Solo master them quite difficult. It seems to me that in the group will make it significantly easier.Of course, these methods should be known to a small number of people, if some methods will be known to the investment fund, the investment fund will deflate method of the profits. On a group of 15 people the effectiveness of the method will be enough I think. And work better in a group. Hard to work alone, there is no communication with colleagues, little development. I hardly believe that econophysical methods easily given alone. Effectiveness at the stage of active development methods higher in the group than single trader.



Isn't that the basic notion of efficiency and arbitrage?

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I think not, when talking about a small group that does not tell the methods in the open Internet.



What fair market compensation would a Kollectiv offer for true edge?

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All equally between group members, - and the profit and methods.



Please note that the group invited people with mathematical education (or people striving to develop mathematical and physical skills), the knowledge needed as a minimum for the correct formulation of the problem which the group employees may, if necessary, may employ online.



P.S. And organize a group is not easy, I'm trying to make a group of Russian Speaking traders but do not get a result. I think that the group may be international.



In the group may not want to work only high-level professionals (who not only earn a lot, but well versed in methods and programming), but there are very few people, however qualitative methods more than these people.



Thank you for your questions.

Best, Dmitry.

[deeds]

Apologies for the late reply



Thank you for your thoughtful response



Best of luck in putting the group together

[silverside]

tragedy of the commons ?

[nikol]

In 1970s poker players started to pool their money and join efforts to smooth their performance and to reduce insolvency. Try this way?



If you are wealthy enough hire and motivate 15 people working for you... Otherwise, there is no economical gain to share in the way you dream of. Because, if an idea is published among 15 people without serious legal framework, this idea will immediately be explored by all 15. And the chance that it is spread further increases enormously depreciating the edge. Like the entropy.



At least I am pessimistic on this type of cooperation.

Being purely theoretical it works.