George Soros, legendary and greatly successful investor, suggests not to bet on fundamentals but rather on future crowd behavior (see “The Alchemy of Finance: Reading the Mind of the Market”). Following this advice, for successful trading in today’s markets it is crucial to know about what the determinant market driving crowd behavior currently is and [...]
Whodrivesthemarket.com is based on the following abstraction of the universe of trading strategies. We assume according to Shleifer and Summers: Information based fundamentalists (value investors) Noise trading chartists (e.g., trend followers) The goal of whodrivesthemarket.com is to help you exploit uninformed noise trading market behavior. References: Shleifer, A. and L. H. Summers (1990): “The Noise [...]
The fraction of chartists is high at times of crises, crashes, and bubbles. These times correlate with highly active trading periods, thus volatility and trading volume are also high. The subsequent figure points this out by showing (1) the asian financial crisis, (2) the russion financial crisis), (3) the height of the new economy tech [...]
This site is about helping you leverage your own trading strategy by adapting it in relation to quantities of strategies other market participants currently employ. Assuming that trading can be considered a game, our mission is game theoretically motivated: Improve your game results by adapting your strategy according to strategies used by the other game [...]
You may have already asked yourself: “What drives the market?”. An answer might be fundamental news of companies listed on the stock markets. In this context, successfull investor and legendary fund manager George Soros suggests in his book “The Alchemy of Finance: Reading the Mind of the Market (1987)” to bet on future crowd behavior, [...]