IMPACTS OF THE MOGA FUNCTION: SAFE MARKET?

Continuing the treatment regarding the Day Trade trading model and the Moga Function, it is necessary to determine, above all, that T = 1/D, where D = market dominance by a given Asset.

With that, it is not correct to affirm that there is an absolute difficulty for a Global Economic Crisis of Worldwide Negotiations to occur. However, the Moga Function clearly reduces the probability of imbalances and strengthens daily confidence.

There are some limitations in the face of Exogenous Shocks, since no mathematical model resists completely out-of-pattern events, such as wars or pandemics; however, in a scenario of normality, it is possible to say that the situation receives significant reinforcement at the moment of investing.

The Moga Function, with all its apparatus, not only reacts to shocks, it ends up anticipating unbalanced pressures and signaling liquidity risks before they spread. Thus, it is possible to identify a Structural Risk Monitoring.

Regarding Monitoring, Moga has the capacity to detect abrupt compressions in the order flow. This allows participants to readjust positions early. While rising w highlights atypical buying or selling accelerations, D amplifies signals of assets with greater systemic relevance, which are not always the largest to result in a Trend, considering what I have already mentioned about the dependence between w and T in the previous post.

This relationship offers a clear view of anomalous patterns, which creates automatic triggers to reduce exposure in tense markets.

Confidence and standardization of daily investments also have their place. By adopting Moga, managers and traders begin to "speak the same numerical language". From this fact follows: more rational decisions, in uniform metrics; smaller exaggerated reactions to local news; and, moreover, redistribution of capital to liquid assets, which prevents mass flight.

All this situation reduces emotional alignment, ultimately strengthens price formation in a more efficient manner, and, finally, supports the normal functioning of markets on a global scale.