decimal bias

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michal.kreslik
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Postby michal.kreslik » Tue Aug 08, 2006 6:52 pm

djfort wrote:Came a cross with following text and would be interested to know what you think of it…thanks

Tony


djfort wrote:[0026] 1. Decimal errors: Failure to change a "big" decimal digit of the quote. Example: a bid price of 1.3498 is followed by a true quote 1.3505, but the published, bad quote is 1.3405. This error is most damaging if the quoting software is using a cache memory somewhere. The wrong decimal digit may stay in the cache and cause a long series of bad quotes. For Reuters page data, this was a dominant error type around 1988! Nowadays, this error type seems to be rare.


The above patent application deals with something different. It's a method for filtering out the so called "bad ticks". One of the errors that the method is claiming to correct is the "decimal error" caused by a higher order decimal symbol not being flushed from the cache in time.

Inspirational reading, thanks. Should I file a patent application for some of my various observations, too? :))

Have a great day,
Michal

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TheRumpledOne
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Postby TheRumpledOne » Thu Aug 10, 2006 2:27 am

I guess I should file a patent or 2 myself!!
IT'S NOT WHAT YOU TRADE, IT'S HOW YOU TRADE IT!

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Re: decimal bias

Postby aspTrader » Thu Aug 10, 2006 11:14 am

michal.kreslik wrote:when observing the tick price action in Forex, I was wondering whether the prices have any bias towards certain repetitive decimal levels ("00", for example).

Michal,
Great analysis and I think your focus on Statistics here is a useful thing.

But I'm not clear that the variance of of occurrences of various decimal levels is significant enough to be useful.

Statistical analysis can be helpful but I would bet a very nice lunch that this particular phenomenon cannot be leveraged to advantage.

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michal.kreslik
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Postby michal.kreslik » Thu Aug 10, 2006 12:55 pm

aspTrader,

I agree with you completely that the variances observed are indeed very small to be leveraged to the traders' advantage all by themselves.

These results are just one tiny fragment in a mosaic of market idiosyncrasies. Astute trader and system developer uses more fragments to make the whole mosaic :)

Michal

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Postby TheRumpledOne » Sat Jan 05, 2008 8:38 pm

Can we do this for DAILY rather than tick?

I want to know how many times the price closed on each price ending in 00, 01, 02, ... , 97, 98, 99.
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Postby michal.kreslik » Mon Jan 07, 2008 6:00 pm

TheRumpledOne wrote:Can we do this for DAILY rather than tick?

I want to know how many times the price closed on each price ending in 00, 01, 02, ... , 97, 98, 99.


It can be done on daily bars, based on what is the last time of the day.

Michal

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