Economics and Finance

1408 Submissions

[4] viXra:1408.0138 [pdf] replaced on 2014-08-22 01:33:58

Use Thermodynamic Laws to Describe Macroeconomics

Authors: Wanchung Hu
Comments: 2 Pages.

There is a great analogy between thermodynamics and economics. Here, I will use the laws of thermodynamics to describe the laws of macroeconomics. The first law of thermodynamics explains the conservation of energy. Thus, the internal demand and external trade will contribute to citizens’ income. The second law of thermodynamics says that entropy will always be enlarged. Thus, developed nations will have larger entropy compared to developing or non-developing nations. The third law of thermodynamics also reaches because there is no perfect monopoly.
Category: Economics and Finance

[3] viXra:1408.0127 [pdf] replaced on 2014-08-19 03:10:57

Use Newton’s Mechanics to Describe Macroeconomics

Authors: Wanchung Hu
Comments: 3 Pages.

There is an analogy between physics and economics. Here, I will use Newton’s mechanics to describe and deduct the principle of macroeconomics. Economics force is defined as F=dMV/dt=dPG/dt. The link between inflation rate, interest rate, growth rate, and money acceleration rate will also be defined. Principles of least action will be applied to the economics principle. Thus, we have new potent tools to analyze economics activities.
Category: Economics and Finance

[2] viXra:1408.0030 [pdf] submitted on 2014-08-06 12:20:52

Reverse Spreads: Theoretical Foundations and Trading Model

Authors: Sergey Kamenshchikov
Comments: 6 Pages.

Those who already faced the Trend following concept know that effective strategies of following the trend suggest dynamic stop loss level movement without profit limitation. The position is kept until the trend is changed and the order is done. With a proper choice of the market entry point the trader switches a position into the breakeven mode and thus relieves the psychological pressure. With this approach, a profit limitation is deliberately not applicable, allowing holding the position for a long time. This approach is also useful as it minimizes the commission fee calculated on the intraday basis that the trader pays to the broker. The Trend-Following strategy uses the market momentum and allows taking profit in the long-term and large-scale trends. The natural obstacles to this strategy are the long term low volatility in the selected time frame(sideways movement), as well as systematic sudden market changes. We would like to show you a method of pair trading with inverse spread by the example of сcomposite instruments - PCI that allows finding new areas of sustainable trend occurrence and hedging systematic risks at the same time.
Category: Economics and Finance

[1] viXra:1408.0023 [pdf] submitted on 2014-08-05 14:17:56

3D Method of the Analysis and Prediction of Driving of Stock Quotes in Short-Term Perspective

Authors: A.Antipin
Comments: 8 Pages.

As a result of search of objective (settlement) methods of the analysis and forecasting of movement of the prices at a stock exchange, the fundamental role of parameter "the maximum deviation of the price from Open by the current moment sessions" (it is named "Base") has been found out. Base use allows to present session in the form of object with the developed geometrical form-structure. Structure elements are accurately enough localised in space. Structure, as a whole, keep the configuration, at least, some months. The object is a set of attractors to which the Price and "avoiding areas" for the Price is drawn. The object, as a whole, has 4 measured character. It is represented in three "spatial" variables plus the coding by colour. Variables are: the transaction Price, Base, a session Present situation, Probability of the transaction to occur till the end of session. All variables have unequivocal numerical character and, thus, are strictly objective. Spatial variables set conditions of realisation of the transaction, the coding colour shows probability of the transaction. In article the algorithm of construction of Object is given, the basic idea of practical use of Technology is described. For today the Technology works in current session, i.e. is applicable, while, to day-trading. Use of Technology and supervision with its help behind the market, has shown high degree of conformity of a reality. It has allowed to offer qualitative model for movement of the prices.
Category: Economics and Finance