The Multi Dimensional Market, from Leo Jia
I view the market as having many dimensions. I believe you can define market regimes based on its status along any one dimension. For instance, one dimension could be trendiness. You can define three basic regimes along this dimension: up trend, down trend, and sideways. Another dimension could be volatility. So regimes along this dimension can be high volatility and low volatility.
How else would one separate the market into different regimes? Which ways of separation in your experience benefit trading more?
Comments
Sam on May 13, 2015 4:05 pm
How about the dimension of where trade flow is coming from? Regimes responsible for price action could be Specs, Central Banks, Commercials, HF Algos