Optimizing Profit with Three Points: A Scientific Approach

  • Context: MHB 
  • Thread starter Thread starter xNICK1
  • Start date Start date
  • Tags Tags
    Angle
Click For Summary

Discussion Overview

The discussion revolves around the optimization of profit using a scientific approach based on three data points from stock market trends. Participants explore the geometric interpretation of these points as angles in a triangle and the implications of using limited data for financial predictions.

Discussion Character

  • Exploratory
  • Technical explanation
  • Debate/contested

Main Points Raised

  • One participant seeks assistance in proving that the angle formed by three points (Ex.1) is smaller than that formed by another set of points (Ex.2) and wishes to apply a formula universally.
  • Another participant questions the definitions of Ex.1 and Ex.2, as well as the formula being referenced and the meaning of the values A, B, and C.
  • A participant clarifies that A, B, and C represent y-values from stock market data, suggesting they are not points in a two-dimensional space without additional context.
  • Further clarification is provided with specific coordinates for A, B, and C, allowing for a geometric interpretation as triangles.
  • One participant introduces the cosine law to calculate angles based on the triangle formed by the three points.
  • A concern is raised about the validity of conclusions drawn from only three data points, questioning the reliability of predictions based on such limited information.
  • Another participant acknowledges the limitation of three points but expresses interest in testing the approach as a complement to an existing profitable strategy used in market bots.

Areas of Agreement / Disagreement

Participants express differing views on the adequacy of three points for making predictions, with some acknowledging the limitation while others are interested in exploring the approach further. No consensus is reached on the validity of using three points for profit optimization.

Contextual Notes

The discussion highlights the dependence on the interpretation of data points and the assumptions made regarding their significance in financial modeling. The mathematical steps and implications of using the cosine law are not fully resolved.

xNICK1
Messages
14
Reaction score
0
Hey guys, I'm struggling trying to figure this out and need some assistance. Not sure if I'm in the right category or needing the angle or what. But the goal is to prove Ex.1 is much smaller of an angle than Ex.2 and to be able to use the formula on a universal scale.
Ex1: A=190, B=222, C=195
Ex2: A=200, B=222, C=210
Any thoughts or answers would greatly be appreciated
Thank you for your time and help!
 
Physics news on Phys.org
what are Ex1 and Ex2?

what “formula” are you referencing?

what do the values given for A, B, and C represent?
 
I don't know the formula I'm needing.
A,B,C= 3 points from a line from the stock market in order, where if B>A and C
So if a line goes up then back down then we grab the last 3 points and B=peak and middle, A=<b and before B, C=<b and after B

Thank you for the response, skeeter
 
No, A, B, and C are NOT points. A point would require at least two component (in two dimensions). Certainly to have an angle, you need two dimensions. You say these are "3 points from a line from the stock market in order" so I suspect that they are "y" values of an (x, y) point where "x" is a date or time. Without knowing those, we cannot talk about an "angle".
 
Last edited:
My apology,
Ex1: A=(5pm,190), B=(6pm,222), C=(7pm,195)
Ex2: A=(5pm,200), B=(6pm,222), C=(7pm,210)
like this?
 
Good! Now you can think of these as triangles.
In example 1 You have a triangle with vertices at A(5, 190), B(6, 222), and C(7, 195).
So side AB has length $c= \sqrt{(6- 5)^2+ (222-190)^2}$, side BC has length $a= \sqrt{(7- 6)^2+(222- 195)^2}$ and side AC has length $b= \sqrt{(7- 5)^2+(195- 190)^2}$.

Now you can use the "cosine law": $b^2= a^2+ c^2- 2ac cos(B)$ to solve for cos(B) where B is the angle where sides AB and BC join.
 
Once you find the "angles", what does one interpret from them? Three points hardly seems to be enough data to make any valid conclusions/predictions ... :unsure:
 
Thank you very much Country Boy, I'm glad someone listened in school.
skeeter,
correct 3 points of the price definitely isn't enough data, but I wanted to test when its 3 points from an already proven profitable strategy that we run market bots off of. This could help compliment the strategy to improve profits as show in the example. ;)

chart.png
 

Similar threads

  • · Replies 1 ·
Replies
1
Views
4K
  • · Replies 9 ·
Replies
9
Views
3K
Replies
7
Views
2K
  • · Replies 1 ·
Replies
1
Views
5K