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Entropy Oriented Trading: A Trading Strategy Based on the Second Law of Thermodynamics

The author proposes a finance trading strategy named Entropy Oriented Trading and apply thermodynamics on the strategy. The state variables are chosen so that the strategy satisfies the second law of thermodynamics. Using the law, the author proves that the rate of investment (ROI) of the strategy is equal to or more than the rate of price change.

q-fin.TR

Einstein against quantum mechanics: randomness, ignorance and our ignorance about randomness

Albert Einstein made fundamental contributions to the development of quantum mechanics. However, he was never satisfied with the quantum worldview. In fact, during most of his life he attempted to find inconsistencies and paradoxes within quantum mechanics. His famous quote "God does not play dice" shows how disturbing was to Einstein one of the most important aspects of quantum mechanics: non-determinism. In this paper we will present the basic concepts of quantum mechanics, we will describe Einstein's attempts to destroy it and we will discuss why we can nowadays state that, in this regard, Albert Einstein was not right.

physics.hist-ph

The social aspects of quantum entanglement

This brief article discusses some aspects of quantum theory and their impact on popular culture. The basic features of quantum entanglement between two or more parties are introduced in a language suitable for a general audience, and metaphorically connected to love and faithfulness in human relationships.

physics.pop-ph

A Bayesian Framework for Combining Valuation Estimates

Obtaining more accurate equity value estimates is the starting point for stock selection, value-based indexing in a noisy market, and beating benchmark indices through tactical style rotation. Unfortunately, discounted cash flow, method of comparables, and fundamental analysis typically yield discrepant valuation estimates. Moreover, the valuation estimates typically disagree with market price. Can one form a superior valuation estimate by averaging over the individual estimates, including market price? This article suggests a Bayesian framework for combining two or more estimates into a superior valuation estimate. The framework justifies the common practice of averaging over several estimates to arrive at a final point estimate.

q-fin.ST

Research News -- Quantum Mechanical Entanglement and Tests of CPT Theorem with Neutral Mesons at e+ e- Colliders

We review the recent confirmation of quantum entanglement in e+ e- collisions at the BELLE experiment at KEK-B in Japan with neutral B- mesons, and at the KLOE experiment at the DAFNE in Italy with neutral K- mesons. Such effects in the latter system seen already in proton-antiproton collisions by the CPLEAR experiment are also reviewed for purposes of comparison. In addition, the KLOE experiment provides new tests of the CPT theorem and are briefly discussed.

physics.pop-ph

Trouble with Physics?

This is a review of Lee Smolin's "The Trouble with Physics". The main gist of the review is that the physics of the past three decades has been rich with new discoveries in a large number of domains. The Standard Model, while providing a successful framework for the electroweak and strong interactions still needs to be developed further to fully account fot the mass of strong interaction data collected over the decades. A multitude of new phenomena have been discovered however, or predicted theoretically, in the physics of very low temperatures (e.g. fractional Hall effect, Bose-Einstein condensation) and quantum macroscopic effects (liquid crystals, high temperature superconductivity), some of which remain to be fully explained. Therefore if there is any "Trouble with Physics", as implied by the author of this book, it mainly concerns speculative work on Superstring theory, which may or may not turn out to agree with the results of observation. The subject as a whole does not appear to be in trouble.

physics.hist-ph

Shut up and calculate

I advocate an extreme "shut-up-and-calculate" approach to physics, where our external physical reality is assumed to be purely mathematical. This brief essay motivates this "it's all just equations" assumption and discusses its implications.

physics.pop-ph

Einstein, Sciascia, Majorana, Amaldi, e il Rapporto tra Intellettuali e Potere (Einstein, Sciascia, Majorana, Amaldi, and the Relationship of Intellectuals with the Power)

In Europe (e.g., in Italy), and in the States, the opinion is widely spreading that the negative consequences of modern progress are the fault of "Science". A lively debate on this topic took place among the famous writer Leonardo Sciascia and Italian physicists like Edoardo Amaldi and Emilio Segre', when Sciascia wrote his known book about the disappearance of Ettore Majorana, a book that presented Majorana (a very reserved theoretical physicist) as an example of the scientist that keeps his discoveries secret when afraid of possible evil applications. We wish to contribute now to such a question, since many special meetings did recently return to it, while celebrating the centenary of Majorana's birth (2006), or 30 years (2005) from Sciascia's book publication. It appeared natural to us to start with the figure of Einstein, who, even if extremely peaceable, supported the atomic bomb construction by his letter to Roosvelt. We discuss first the significance of part of Einsteins's scientific work (which flourished in particular one century ago): We seize this opportunity for presenting a derivation of the "twins paradox", so simple that it has been taught to Senior High School last-year students or University undergraduate students; all the present work, more in general, is addressed mainly to them. In the second part of this paper, we analyse the general meaning of Einstein's contributions to philosophy and pedagogy. The third part is entirely devoted to our main subject, i.e., to discussing the "Responsibility of the Intellectuals". The reader interested chiefly in this last part, can find it re-expounded in a self-contained way in the Appendix. More information in the Contents of this article.

physics.gen-ph

The Cosmos in Your Pocket: How Cosmological Science Became Earth Technology. I

Astronomy provides a laboratory for extreme physics, a window into environments at extremes of distance, temperature and density that often can't be reproduced in Earth laboratories, or at least not right away. A surprising amount of the science we understand today started out as solutions to problems in astronomy. Some of this science was key in the development of many technologies which we enjoy today. This paper describes some of these connections between astronomy and technology and their history.

physics.pop-ph

A Scenario for a Natural Origin of Our Universe

A mathematical model of the natural origin of our universe is presented. The model is based only on well-established physics. No claim is made that this model uniquely represents exactly how the universe came about. But the viability of a single model serves to refute any assertions that the universe cannot have come about by natural means.

gr-qc

Results from MiniBooNE

The long awaited experimental results from MiniBooNE have recently been announced. This experiment tests whether neutrino oscillations can occur at a higher mass squared difference $\sim1 {eV}^2$ compared to well established observations of solar and atmospheric neutrinos. The LSND experiment has previously claimed to have observed neutrino oscillations at $Δm^2 \sim 1 {eV}^2$, however the results being controversial, required an independent confirmation. The MiniBooNE results settle this controversy by observing null oscillations at the said mass squared difference. These results have strong implications on existence of sterile neutrinos, CPT violation and mass varying neutrinos. We review the present status of neutrino masses and mixing in the light of this recent result.

physics.pop-ph

In-situ observation of a soap film catenoid - a simple educational physics experiment

The solution to the Euler-Lagrange equation is an extremal functional.To understand that the functional is stationary at local extrema (maxima or minima), we propose a physics experiment that involves using soap film to form a catenoid. A catenoid is a surface that is formed between two coaxial circular rings and is classified mathematically as a minimal surface.Using soap film, we create catenoids between two rings and characterize the catenoid in-situ while varying distance between rings. The shape of the soap film is very interesting and can be explained using dynamic mechanics. By observing catenoid, physics students can observe local extrema phenomena. We stress that in-situ observation of soap film catenoids is an appropriate physics experiment that combines theory and experimentation.

physics.class-ph

Some conjectures about the mechanism of poltergeist phenomenon

Poltergeist accounts concern at least four kinds of strange spontaneous manifestations, such as burning of materials, failures of electric equipments, rapping noises and movements of objects. A simple analysis of phenomenology of these disturbances shows that they might have a common origin, that is, a reduction in strength of molecular bonds due to an enhancement in polarization of vacuum which decreases the actual electron charge. Arguments based on Prigogine' nonequilibrium thermodynamics are proposed, which show how transformations in brain of some pubescent childs or young womans might be the cause of these effects.

physics.gen-ph

SETI and muon collider

Intense neutrino beams that accompany muon colliders can be used for interstellar communications. The presence of multi-TeV extraterrestrial muon collider at several light-years distance can be detected after one year run of IceCube type neutrino telescopes, if the neutrino beam is directed towards the Earth. This opens a new avenue in SETI: search for extraterrestrial muon colliders.

physics.pop-ph

Observation of magnetic field lines in the vicinity of a superconductor with the naked eye

Meissner effect and pinning effect are clearly observed with the naked eye. A GdBaCuO high-temperature superconductor (HTS) disk fabricated by Nippon Steel Corporation, a 100mm cubic NdFeB sintered magnet, and iron wires coated by colored are used. When the HTS is put in the magnetic field of the magnet, it can be observed by the wires that the magnetic field lines are excluded from the superconductor (Meissner effect) as well as are pinned in the superconductor (pinning effect).

physics.gen-ph

Chromogeometry and relativistic conics

This paper shows how a recent reformulation of the basics of classical geometry and trigonometry reveals a three-fold symmetry between Euclidean and non-Euclidean (relativistic) planar geometries. We apply this chromogeometry to look at conics in a new light.

math.MG