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by QML
3115 days ago
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So TL;DR the market isn’t as efficient as most would believe it is. That makes sense since the market is ran by humans; but what if it was solely managed by a computer. While reviewing for a final, I learned that computers are extremely fast at detecting negative cycles. An application of this? Arbitrage. If you graph the foreign exchange market with each vertex being a currency and a directed edge being an exchange rate, applying the logarithm operator to each edge and then running a DFS transversal, it would be possible to find paths of arbitration. |
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