@deltatrendtrading: Markov chains are an extremely powerful and elegant approach to many problems in quantitative finance and trading. I feel that—when explained correctly—they are deeply intuitive as well. I hope this video offers some of that intuition. Please leave any questions in the comments, and I will try to answer them as best I can. In coming videos, we will explore more practical and advanced applications of Markov chains to quant trading. #quant #quanttrading #quanttrader #trading #finance
Explaining Markov chains to an American: imagine eating a burger tomorrow
2025-11-07 07:23:00
1847
sicksevenfive :
Love this. Cool to see quant stuff as swe
2025-11-05 02:19:18
1155
Fire me up cheddy :
The biggest issue with the markov model of any financial model is they used , previous information to make assumptions of future outcomes . In physics this is helpful because physics often times work within a set of laws so the predictive nature of an outcome can be quantified to a more of less exact probability . However using it as a financial tool not so much in a market dictated essentially by complete randomness no model can confidently predict movement or outcome it simply cannot account for unknown information , a theoretical infinite amount of variables and quantify a probability something happens to any degree of certainty. Models are useful in finance for summary’s of previous outcomes and detecting anomaly’s but using them as a tool for trading directly is no better than closing ur eyes and picking if a stock goes up or down.
2025-11-05 06:20:43
140
mekaeyl م :
This is what the internet was made for
2025-11-07 23:58:23
198
Theo :
Is this taught in calc II? Feels familiar
2025-11-06 20:00:48
21
Mark :
Oh when did you swap to physics I thought you were in financial engineering
2025-11-05 04:31:40
450
HaterTot :
Hell yeah. Markov chains are dope af. They explain consciousness but for some reason I never hear anyone talk about that
2025-11-05 08:56:21
80
sudosyd :
I’m hitting the books
2025-12-12 10:00:45
14
quami :
Made a lot of sense thanks
2025-11-05 03:07:51
43
Dan McKean :
Amazing explanation man, I went from zero to understanding the concept and you didn’t lose me anywhere, kudos.
2025-11-05 05:03:38
88
Vasyl :
Anyone else do this in computer logic and design, making finite state machines?
2025-11-05 16:52:27
229
Soundjourney :
This has helped me understand the Markov Chain. Thanks
2025-11-05 19:22:50
51
Ahmad :
Wait werent you studying financial engineering?
2025-11-05 11:10:33
6
Rishabh Sub :
I’m taking an AI deep learning course which touched on the concept of Markov Chains for generative AI and I understood none of it, this really helped visualize the bare bones mathematical equations that I’m being taught, thanks
2025-11-06 06:54:41
13
mathscribbles :
Bro I understood everything!! Amazingly presented
2025-11-05 21:00:53
11
Nimai Reddy :
Would love to pick your brain on how I can begin to apply this for say physical gas prices at certain pricing hubs over time
2025-11-06 07:01:19
5
DeadRat :
Markov chains are very useful for optimal execution strategies, modelling market regimes and stochastic price impact. You explained well bro.🔥
2025-11-05 14:09:07
10
Hmmmmm :
this was so sick, can you make youtube vids?
2025-11-06 20:40:16
6
user122631373617 :
this is great man thank you!!!
2025-11-05 13:18:48
6
B. :
Good stuff. Genuine question, what are the defining conditions or axioms of a markovian space and can we use those to validate markets are Markovian rather than non-markovian? I’ve seen arguments that QM is non-markovian which is what brings the question to mind.
2025-11-05 18:17:29
7
callumarnaudy20 :
correct me if I am wrong here but I thought that because the market has a “memory”, displayed through vol clustering ect… that proves that using markov chains would be irrational as markov chains by very nature are memory less
2025-11-05 03:10:38
7
Gjsant :
Commenting so bro gets paid
2025-11-05 08:08:48
6
otium :
We learn this in highschool here in Bulgaria
2025-11-05 02:17:29
4
Kings_Profits :
This is cool, thorough. Thanks
2026-03-09 23:07:34
2
Profitable :
Thank you
2026-01-08 11:24:58
2
To see more videos from user @deltatrendtrading, please go to the Tikwm
homepage.