Relative Prices: Difference between revisions
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This way of presenting the price data | This way of presenting the price data concentrates only on changes in the relative value of the tokens. Leaving out the effects of external factors affecting all token's prices in the same way. | ||
Traders profit from oscillations in the relative prices of the four tokens. | Traders profit from oscillations in the relative prices of the four tokens. | ||
Revision as of 18:47, 13 June 2023
Proof of Concept. Historical Relative Price Data.
This graph represents the Relative Prices of the four tokens. It spans the first 21 months of the project. (from September 2021 to June 2023)
On the vertical axis, we have the token’s price divided by the average value of the four token's prices.
This way of presenting the price data is independent of external factors affecting all four tokens' prices. In particular, this chart is independent of the dollar prices of the tokens.
Any change in the price of the tokens due to external factors would affect the numerator and denominator of this fraction in the same proportion. Canceling out its effect on this graph.
This way of presenting the price data concentrates only on changes in the relative value of the tokens. Leaving out the effects of external factors affecting all token's prices in the same way.
Traders profit from oscillations in the relative prices of the four tokens.
And those are independent of the dollar price of the tokens.
