Entropy Oriented Trading: A Trading Strategy Based on the Second Law of Thermodynamics

Yoichi Hirai
Additional contact information
Yoichi Hirai: The University of Tokyo, undergraduate

Papers from arXiv.org

Abstract: The author proposes a finance trading strategy named Entropy Oriented Trading and apply thermodynamics on the strategy. The state variables are chosen so that the strategy satisfies the second law of thermodynamics. Using the law, the author proves that the rate of investment (ROI) of the strategy is equal to or more than the rate of price change.

Date: 2007-05
References: Add references at CitEc
Citations:

Downloads: (external link)
http://arxiv.org/pdf/0705.2820 Latest version (application/pdf)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:arx:papers:0705.2820

Access Statistics for this paper

More papers in Papers from arXiv.org
Bibliographic data for series maintained by arXiv administrators ().