Stock Market Strategies Implied by a Stochastic Particle System Model Adopted as Econophysics

Music City Center 

The Inequality Process (IP) (Angle, 1983-2022) is a stochastic particle system model of a process of competitive exclusion driving wealth production. The IP may be a natural law; it has been adopted as econophysics. Labor income statistics teem with invariant patterns implied by the IP. The IP implies a number of statistical patterns, "stylized facts", in the market capitalizations of exchange listed corporations. This paper identifies strategies that buyers/sellers of listed stocks use that are implied by the IP, i.e. putting those strategies on an econophysical footing. Recognized experts in quantitative finance claim nothing like the IP operates in stock markets.

competition

invariances

particle system

quantitative finance

stock market

trading strategies 

Business and Economic Statistics Section