Description of a Methodology from Econophysics as a Verification Technique for a Financial Strategy

Abstract

In this article, I would like to draw attention to a method inspired by the analysis of stochastic models typical of quantum physics, and to utilise it to test a financial strategy. We start from the principal question asked by anyone involved in financial investments: Are the results obtained due to a correct interpretation of the market, or are they merely fortuitous? This is a plain question and it can be given an equally clear answer. The results obtained are due to a correct interpretation of the market if the probability of obtaining equal or better results randomly is very small (i.e. tends to zero as the number of times the strategy is used increases).

Keywords: Quantitative Finance