March 2020
If your cardiogram matches the volatility of the market, then Theta 45 is the beta blocker you need.
March 2020, the lock-down and the founder of Theta 45 almost had a cardiac-arrest himself, as the markets swung up and down violently. In the days that followed, while waving his arms around in frustration and matching the swings in the market, the founder noticed his arm makes an angle that represents the change in price. An angle he called theta. He pondered, wouldn't it be good to determine the number of times the change in this angular price, theta breached a specified angle, such as 45 degrees. While doing the mathematics, the founder noticed that no matter how large the percentage change in price, when converted into an angle theta, its value remains between -90 and +90 degrees, exclusively. |
April 2020
The core Theta 45 algorithm counts the number of times the closing price breaches a specific angle (such as 45 degrees).
Each specified angle defines the sample space. Every time the closing price breaches an angle, an event is registered. The number of times an event occurs generates a probability function. The probability function is used to determine the expected value. The expected value and the probability function are used to calculate the standard deviation. |