What is the theory of relativity of money?
This concept of TIME will completely change how you predict financial markets!
Albert Einstein famously said: “Time is RELATIVE; its only worth depends upon what we do as it is passing”.
In financial markets, the passing of time is not constant: over the weekend trading comes to a standstill, while at news announcements there are spurts of market activity.
That’s how the concept of INTRINSIC TIME was born: Intrinsic Time “ticks” when markets are moving and things are happening.
But if the market has low volatility, then the Intrinsic Time automatically accelerates the passage of time.
Intrinsic Time automatically focuses on what is relevant for achieving good performance.
A financial market price curve (grey) dissected by a set of directional-changes (grey squares). The size of the threshold of the operator shown in the middle of the figure. Additionally, ocal extremes marked by grey circles. The timeline contains intervals of equal length in physical time. In addition, the length of the intervals based on the directional-change operator. VlPetrovCommons – Own work
The name Intrinsic Time also highlights its key difference to Physical Time.
Scale of time in Jain texts shown logarithmically
Intrinsic time ticks with the beat of the events of the data series itself.
The ups and downs of market prices determine the flow of Intrinsic Time, and is not dictated by the rate of Earth’s rotation, like for calendar time.
Intrinsic time is fascinating tool for market prediction, because we used it to discover patterns in financial markets!
These patterns are called “scaling laws” and they are universal laws that significantly enhance our understanding of the markets.
Each iteration of the Sierpinski triangle contains triangles related to the next iteration by a scale factor of 1/2.
Moreover, in financial markets, frames of reference and fixed points are hard to come by and often illusory.
Intrinsic Time patterns provide a reliable framework to make predictions about the behavior of prices.
Richard Olsen, the founder of Lykke – a ZERO fee crypto exchange, has created a tool called ATTMO, where you can predict the crypto markets with the patterns from Intrinsic Time.
Head over to ATTMO’s website (link in comments) and check out the patterns!
Written by Anton Golub
Anton is a Strategic Advisor of Pazar, decentralized OTC marketplace. Anton founded & served as CEO of flovtec, Swiss market-maker providing liquidity solutions to digital asset exchanges, token issuers & protocols and offering investment products for professional & institutional investors. In addition, Anton is also a co-founder of Trust Square AG, a pre-eminent blockchain technology hub located in Zurich’s financial district. Furthermore, Anton co-founded Lykke Corp, a blockchain-powered exchange to trade all assets with zero fees, where he served as a Chief Science Officer. Prior to Lykke, he worked as a quantitative researcher at Olsen Ltd (successor to Olsen & Associates, founded in 1985), a boutique investment firm that pioneered the field of high-frequency trading.
As a Marie Curie Research Fellow at the Alliance Manchester Business School, Anton worked on high-frequency trading, market microstructure and flash crashes. In 2011, he was invited to participate in the Foresight Project – The Future of Computer Trading in Financial Markets, an international project on algorithmic trading funded by HM Treasury in the UK. Anton has also been involved in several research projects backed by the European Union (EU) and was on the Supervisory Board for the BigDataFinance project funded through Horizon 2020. Lastly, he has co-authored 13 academic papers and two books.
See more from Anton:
Understanding The Collapse Of Crypto Shadow Banking
MARKET-MAKING SUPERPOWERS : Hidden Call Options
