Thursday, March 09, 2006

Trader Experiment in Bay Area

Trader Experiment in Bay Area

Wanted to mention a study we're doing on the psychophysiology of traders in the San Francisco Bay Area. Similar to Andrew Lo's experiments, but measuring in more detail. I'm looking specifically at the physiological signals of emotion and arousal that preceed trading, and doing an analysis of whether any of these signals can predict trade outcomes. E.g., is there some type or degree of anticipatory emotion that predicts bad trades vs good ones. This study is performed by a PhD at the Center for Neuroeconomics at Stanford University and myself (medical doctor) at Market Psychology Consulting.

The experimental protocol is below:

Traders will have 4 electrodes painlessly attached to the face and two attached to two fingers of the non-dominant hand. The protocol requires a 6-second pause before trades are executed. The hand should be held completely still and no talking or large movements during the 6-second pauses before the trade. Trade success or failure should be known within three months (so we can measure the correlation with trade outcome). I plan to do a 30 minute period of measurement on one day, possibly additional sessions on different days, if the traders are up to it. The 30 minute session should be one in which the trader makes at least 5 trades (otherwise it's not worth the time).

If interested in participating, please let me know. We'll come to your workplace. There is no payment for participating, only the happy knowledge that you are contributing to the advancement of trading science. Plus you'll get to use your own results to improve your trading (if we find something).


1 comment:

Miguel Angel Boggiano said...

Sounds very interesting. I´d offer myself for the experiment but living in Buenos Aires, I realize I´m very far away from your optimal target.

Best, Miguel