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Detecting the traders' strategies in Minority-Majority games and real stock-prices

V. Alfi, A. De Martino, L. Pietronero, A. Tedeschi

physics.soc-pharXiv:physics/0609038

Abstract

Price dynamics is analyzed in terms of a model which includes the possibility of effective forces due to trend followers or trend adverse strategies. The method is tested on the data of a minority-majority model and indeed it is capable of reconstructing the prevailing traders' strategies in a given time interval. Then we also analyze real (NYSE) stock-prices dynamics and it is possible to derive an indication for the the ``sentiment'' of the market for time intervals of at least one day.

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