Game theory applications in trading - Traders Hideout | futures trading

Go Back

> Futures Trading, News, Charts and Platforms > Traders Hideout

Game theory applications in trading
Started:June 11th, 2013 (05:41 AM) by treydog999 Views / Replies:651 / 2
Last Reply:June 12th, 2013 (02:08 AM) Attachments:0

Welcome to

Welcome, Guest!

This forum was established to help traders (especially futures traders) by openly sharing indicators, strategies, methods, trading journals and discussing the psychology of trading.

We are fundamentally different than most other trading forums:
  • We work extremely hard to keep things positive on our forums.
  • We do not tolerate rude behavior, trolling, or vendor advertising in posts.
  • We firmly believe in openness and encourage sharing. The holy grail is within you, it is not something tangible you can download.
  • We expect our members to participate and become a part of the community. Help yourself by helping others.

You'll need to register in order to view the content of the threads and start contributing to our community. It's free and simple, and we will never resell your private information.

-- Big Mike

Thread Tools Search this Thread

Game theory applications in trading

Old June 11th, 2013, 05:41 AM   #1 (permalink)
Elite Member
seoul, Korea
Futures Experience: Intermediate
Platform: Multicharts
Broker/Data: CQG, DTN IQfeed
Favorite Futures: YM 6E
treydog999's Avatar
Posts: 882 since Jul 2012
Thanks: 289 given, 991 received

Game theory applications in trading

I have always thought about this especially as I am a very big fan of games especially ones with incomplete information such as poker. I actually use this type of thinking for trading although it does sometimes prove contradictory to thinks such as probabilistic strategy. The way i think of this is the game theory comes into a very situational specific strategy, the trade and players involved right now. The probabilistic strategy is what we all think of as homework, based on historical information does one thing occur more frequently than another thing.

For example lets say we have 2 traders 1 is a game theory trader, the other is a probabilistic trader. Lets just assume that they both want to get long.

The probabilistic trader may consider, this type of market action and time of day is great for a breakout trade. Based on his historical research and assessment of the patterns identified a long trade at this time has a higher probability of success over random.

The game theory trader is considering that weak hand shorts are entering the market and look to squeeze them out as they will run out of momentum. Basically this is a very scenario specific trade that is not relying on previous historical data or actually market prices. It is considering the players, their specific condition and how to take advantage. Rather than looking at the historical market action.

I know this is pretty crude explanation but I think its interesting. Any thoughts?

Reply With Quote
The following 2 users say Thank You to treydog999 for this post:

Old June 11th, 2013, 05:41 AM   #2 (permalink)
Quick Summary
Quick Summary Post

Quick Summary is created and edited by users like you... Add FAQ's, Links and other Relevant Information by clicking the edit button in the lower right hand corner of this message.


Old June 12th, 2013, 02:08 AM   #3 (permalink)
Site Administrator
Manta, Ecuador
Futures Experience: Advanced
Platform: My own custom solution
Favorite Futures: E-mini ES S&P 500
Big Mike's Avatar
Posts: 45,428 since Jun 2009
Thanks: 28,836 given, 79,548 received

Seems applicable


Due to time constraints, please do not PM me if your question can be resolved or answered on the forum.

Need help?
1) Stop changing things. No new indicators, charts, or methods. Be consistent with what is in front of you first.
2) Start a journal and post to it daily with the trades you made to show your strengths and weaknesses.
3) Set goals for yourself to reach daily. Make them about how you trade, not how much money you make.
4) Accept responsibility for your actions. Stop looking elsewhere to explain away poor performance.
5) Where to start as a trader? Watch this webinar and read this thread for hundreds of questions and answers.
Help using the forum? Watch this video to learn general tips on using the site.

If you want
to support our community, become an Elite Member.

Reply With Quote

Reply > Futures Trading, News, Charts and Platforms > Traders Hideout > Game theory applications in trading

Thread Tools Search this Thread
Search this Thread:

Advanced Search

Upcoming Webinars and Events (4:30PM ET unless noted)

Corey Rosenbloom: Tips, Tactics, and Real Trades: Trading Intraday Trend Reversals

Elite only

An Afternoon with FIO trader bobwest

Elite only

NinjaTrader 8: Programming Profitable Trading Edges w/Scott Hodson

Elite only

Anthony Drager: Executing on Intermarket Correlations & Order Flow, Part 2

Elite only

Adam Grimes: Five critically important keys to professional trading

Elite only

Machine Learning Concepts w/FIO member NJAMC

Elite only

MarketDelta Cloud Platform: Announcing new mobile features

Dec 1

NinjaTrader 8: Features and Enhancements

Dec 6

Similar Threads
Thread Thread Starter Forum Replies Last Post
Webinar: Auction Market Theory, Trading with Value - Rob Mitchell Big Mike Traders Hideout 29 January 9th, 2015 04:57 PM
Webinar: OrderFlowAnalytics on Order Flow and Game Theory Big Mike Vendors and Product Reviews 27 September 10th, 2013 01:30 AM
Is Trading a Loser's game? bijeremiad Traders Hideout 6 August 18th, 2012 10:22 AM
Game Theory Over: Bank Of France's Noyer Says Britain Should Be Downgraded, Not Franc Quick Summary News and Current Events 0 December 15th, 2011 12:10 AM
GAME THEORY tigertrader Off-Topic 3 October 7th, 2010 08:16 PM

All times are GMT -4. The time now is 07:34 AM.

Copyright © 2016 by All information is for educational use only and is not investment advice.
There is a substantial risk of loss in trading commodity futures, stocks, options and foreign exchange products. Past performance is not indicative of future results.
no new posts

Page generated 2016-10-21 in 0.07 seconds with 19 queries on phoenix via your IP