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From Hidden States to Smarter Trades: A Practical Markov Framework

From Hidden States to Smarter Trades: A Practical Markov Framework

July 26, 2026 Category: Blog

Markets do not announce when a pension fund is accumulating shares, a hedge fund is reducing exposure, or a market maker is adjusting inventory. Traders see only the resulting sequence of prices, trades, spreads, and volumes. Markov algorithms offer one way to organize those observations into probable market states.“Mirroring institutions” shou

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