Tuesday, December 26, 2017

TRIZ and its Application in trading

TRIZ and its Application in trading


The theory of inventive problem solving, or TRIZ - a field of knowledge about
mechanisms of development of technical systems and methods for solving
Inventive Problem Solving. TRIZ is not a rigorous scientific theory, and
It is a generalized experience of invention and study of the laws
the development of science and technology. As a result of the development of TRIZ married
the scope of inventive problem solving in the technical field, and today
is also used in non-technical fields (business, arts,
literature, education, politics, and others.).

Author of the theory - Genrih Saulovich Altshuller.

https://ru.wikipedia.org/wiki/%D0%A2%D0%B5%D0%BE%D1%80%D0%B8%D1%8F_%D1%80%D0%B5%D1%88%D0 % B5% D0% BD% D0% B8% D1% 8F_% D0% B8% D0% B7% D0% BE% D0% B1% D1% 80% D0% B5% D1% 82% D0% B0% D1% 82 % D0% B5% D0% BB% D1% 8C% D1% 81% D0% BA% D0% B8% D1% 85_% D0% B7% D0% B0% D0% B4% D0% B0% D1% 87


TRIZ. Creativity as an exact science -

http://www.i-con.ru/files/content/db/348/[Altshuller_G.S.]_Tvorchestvo_kak_tochnaya_nauka._(BookFi.org).pdf


Additional information on TRIZ:

https://4brain.ru/triz/

http://bookz.ru/authors/avtor-neizvesten/triz/1-triz.html

Another good reference on TRIZ - http://www.altshuller.ru/triz/

EBOOK "INTRODUCTION TRIZ.OSNOVNYE CONCEPTS AND APPROACHES" -

http://www.altshuller.ru/e-books/



Procedure in stages:

1. The correct definition of the problem itself.
2. Analysis of the total of the art, in our case the trading system.
3. Definition of bottlenecks in trading.
4. Determination of the cause of your problem.
5. Conflicts of identification in this issue.

6. Finding methods to resolve this contradiction.

7. Determination of the final decision.


Step 1: the correct definition of the problem itself.

A task: Get a stable profit on FOREX


Step 2. Analysis of the total trading system.

It is necessary to note at once that the FOREX market,
in general, it is quite simple.

Visual representation of the FOREX market - the flat graph in two
coordinates, which shows the curve if display it as a linear
function, or chart as candles or bars. This visualization is possible on
different timeframes of tics and 1 min chart to a daily, weekly or
Monthly graph ...

Not
In spite of all kinds of jumps and grimaces of this curve, it is a flat graph with two
coordinates and find the patterns, with a strong desire, the problem is quite
Solved.


Step 3: Identification of bottlenecks in trading.

If we consider carefully the nature of price movements on
graph, we can see that the movement of price (market rate) is changed from horizontal to sharply
galloping very unpredictable without
smooth transitions and any warning signals about the change of rhythm.


This is the main difficulty in finding regularities
On the market. I think that any trader made
be currently profitable strategy if
price on the chart would move in a certain rhythm (non-epileptic seizures).

But let's consider the trading system with TRIZ position.

Before us is the graph of a function. The curve function is jumping up and down quite chaotic. But at the same time, this function has explicit minimums and maximums. And in order to solve our problem, it suffices to know the extreme points on the graph (intermediate values ​​in this case we are not interested), and receive a stable income in the FOREX us guaranteed. But the difficulty is that these points are very visible on the left side of the chart (in history), and very poorly defined on the right (at) of the chart.

An explicit CONTRADICTION = Extreme points of functions are easily determined on the history ---- and extreme point is difficult to determine in real time.

If you find a method or a way of eliminating this contradiction, this problem will be solved.


Step 4: Determination of the cause of your problem.

The main reason - we can not influence the price itself (himself on the graph of this function).


Step 5: Finding methods to resolve this contradiction.

You can apply Su-Field analysis method, where the source object B1 - the price at which we can not influence.

But it is possible to finish the item to complete vepol, and even then it will be possible to control and modify the vepol under the scheme where B2 - B1 price indicator. B2 configurable field P1 and P2 at the output field representing them themselves SIGNALS defining the desired extrema points.



In the following scheme:

B1 - the original price,

B2 - trend indicator of the original price,

A1 - B2 tuning indicator,

P2 - derived signals to open and close a position, coinciding with a slight divergence from the extremes of the value function.

Note that the data points may not coincide with the starting points, but the task itself is not affected, well, except that a little bit reduced profit margins.


It can also be used from "40 methods to eliminate contradictions":

24. The principle of "intermediary":

a) use an intermediate object, transporting or transmitting operation;

b) at the time attached to another object (removable) object.


Step 6: Determination of the final decision.

An example of a trading strategy that meets this decision:

scheme analysis:

Ind.6 - intersection with line 0 (value + - trend upwards - value - downward trend)

Ind.7 - intersection with line 0 (value + - trend upwards - value - downward trend).



Opening the position - the coincidence of the directions of all the indicators.


Closing a position - at the turn of the fastest indicator.


Determining the direction of the trend of the general trend on the chart with the monthly candles:

Current Analysis - the trend is up.


Confirmation of the trend on the chart with weekly candles:

Current Analysis - the trend is up.


Definition signals to open and close a position on the chart H8:

Current Analysis - the trend is up.

Opening positions only in the direction of the general trend.


Strategies for making such a method can be developed LOTS OF, very different - from intraday trading to long-term trading ... changing timeframes of charts, indicators and changing their number, adding safeguards for exclusion from trade of force majeure.


P.S. Additional information on:

THEORY market in my opinion.

Regularities in the FOREX market

Trend - your friend! - 2




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