Jump to content

Quantum tunneling in financial markets?

Featured Replies

"Laws of nature" is a reach, since financial rules are of our own making. Does the same math sometimes apply to physics and finance? Sure. Happens quite a bit, which is why Wall Street hires physicists.

I only read the abstract, but one statement in it is worth commenting on:

"The equation is identical with a

time-independent Schrodinger equation but incorporates elements of finance"

I'm skeptical of time-independent equations accurately quantifying risk in the financial markets. For example, no time independent equations would have quantified the risk of the effects on the markets of the September 11, 2001 terrorist attacks BEFORE the attacks occurred, or of the more recent melt down in the real estate markets.

  • Author

Bill, the paper only emphasize with the probability with certain price movements in the market if some particular conditions apply. It not, by any means try to predict market behavior as a whole.

 

Quantum physics is already weird enough even without a quantum tunneling in financial markets.

I only read the abstract, but one statement in it is worth commenting on:

"The equation is identical with a

time-independent Schrodinger equation but incorporates elements of finance"

I'm skeptical of time-independent equations accurately quantifying risk in the financial markets. For example, no time independent equations would have quantified the risk of the effects on the markets of the September 11, 2001 terrorist attacks BEFORE the attacks occurred, or of the more recent melt down in the real estate markets.

 

In general that's not a problem; the time evolution can often be tacked on later (i.e. the variables can be separated).

Archived

This topic is now archived and is closed to further replies.

Important Information

We have placed cookies on your device to help make this website better. You can adjust your cookie settings, otherwise we'll assume you're okay to continue.

Configure browser push notifications

Chrome (Android)
  1. Tap the lock icon next to the address bar.
  2. Tap Permissions → Notifications.
  3. Adjust your preference.
Chrome (Desktop)
  1. Click the padlock icon in the address bar.
  2. Select Site settings.
  3. Find Notifications and adjust your preference.