FxPaul

Math in finance or vice versa

Archive for the ‘quantum mechanics’ Category

Trading task in classic mechanics

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In physics, action is an attribute of system dynamics. By definition it is a functional over trajectory or history of the system:
S = \int_0^T L\left(q(t),\dot{q}(t),t\right) dt
where L is the Lagrangian. The real beauty of such description lies in developed and well studied mechanism of equation solutions.

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Written by fxpaul

February 10, 2012 at 09:20

Quantum Mechanics and Market Observables

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Quantum mechanics has quite powerful notion of observables. They are just properties of system state that can be determined by measurement process. Let’s recall main principles of quantum mechanics and how they could be applied to markets.

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Written by fxpaul

January 15, 2011 at 10:53