Heterogeneous traders, price-volume signals, and complex asset price dynamics

Heterogeneous traders, price-volume signals, and complex asset price dynamics

Blog Article

We seek to develop a novel asset pricing Siemens WK14D321GB iQ300 Integrated Washer Dryer model with heterogeneous traders.Fundamental traders expect that asset prices converge towards their intrinsic values, whereas chart traders rely on both price and volume signals to determine their orders.To be precise, the larger the trading volume, the more they believe in the persistence of the current price trend.

Simulations of our nonlinear deterministic model reveal that interactions between fundamentalists and chartists may cause intricate endogenous price fluctuations.Contrary to the intuition, we find that chart Vibration Sensor trading may increase market stability.