Signal to Noise (SN) ratio vs time (T) in cryptocurrencies and stocks:

in #cryptocurrencies7 years ago

Signal to Noise (SN) ratio vs time (T) in cryptocurrencies and stocks:

The longer period the data is from the better signal to noise ratio.

For example: Stock market and in cryptocurrencies (personal observations and approximations).
For T=1 year, SN= 1/1.
For T=1 day, SN= 0.05/0.95.
For T=1 hour, SN= 0.005/0.995.

  • Daily or hourly 'news' are at best irrelevant at worst misleading more than 95% of the time (2 sigmas (standard deviation)).
  • Quick successions of bad news in a very short period could be the result of indirect and involuntary actions and decisions from interconnected transnational organizations (banks media governments) sharing and acting in their self-interests.
  • These are just my observations from publicly available data (not financial advice).