Using Markov Chains to Model Market Regimes

Markov Chains are a foundational tool in probability and quantitative finance, often used to model regime changes such as trending, mean-reverting, high-volatility, and low-volatility market states.

MIT lecture covering the fundamentals of Markov processes and discuss how these concepts can be applied to trading system design, regime classification, and probabilistic forecasting.

Via https://backtest.substack.com/p/using-markov-chains-to-model-market