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Re:Are You Trading or Gambling? by avereveard on Saturday February 27, 2021 @07:49AM (#26284535)
> The way I understand L3, there's no such thing as "fundamental value". There's only market value

I think control theory works better at describing these factors, as L1-L2-L3 suggest some derivative relations that its's not really there.

you have your set point, which is the hard company value. you have n proportional forces, each proportional to the distance from the company current value and that of every put and call on the market. you have a damping effect in the form of HFT, and you have an integrative term, which acts weird because it's applied inversely proportional to the short positions, and it's the lending cost on the short positions.

Re:Are You Trading or Gambling? by TeMPOraL on Saturday February 27, 2021 @08:29AM (#26284716)
Except the whole thing with market being anti-inductive is that you have a non-linear term that's a function of the state of the control system itself!

(I didn't want to suggest some derivative relation - just refer to the "perspectives" mentioned in the topmost comment.)