A study in chaos

Quote from gtor514:

......
What I decided to do was plot a random logistic map on my charting package against a chart for the GBPUSD.

The logistic map equation I use is ...

x[n+1] = r * x[n] * (1-x[n])

I plot this along a chart using only a beginning price to put me in the ballpark of my chart. I have two inputs that I must choose, they are "r" and my initial "x[n]"

Initially my goal is not to find some sort of indicator for the market but determine if chaos is a reasonable approach to study the markets. What I found was very encouraging. I found perfect fibonacci retracements and extensions. Trendlines, support and resistance, gann fans that worked, patterns like head and shoulders, elliot waves and everthing else that traders use to study the market.

....
More...

You can find all types of patterns that will lead you to believe that you are seeing useful: what you are seeeing is universality: many systems have similar behaviour. This really wont help you though much with trading unless you are going to construct an automated system and in this case the basic technical patterns you mention are already known and dont need this level of analysis - only in very specialized circumstances do these ideas have utility.

That said, there are some general ideas that are quite useful that can be extracted from the logistic system. ... If I have time I might post a couple of interesting pictures ....
 
Quote from Holmes:

...

PS What chaos? There ain't no chaos! ...
More...
You could even explain simple breathing as an exercise in chaos. At least, if you have nothing better to do.
 
Quote from sunnyskies:

genetic algorithms have more promise
More...
and here I was, thinking fractal genetic chaotic algorithms give me the upper hand.

faked out again....
 
Chaos is interesting shit to anyone who has done any work with Dynamical systems.

Whether it is of use in trading is another question - and I can assure you that these will not be answered in these forums since anyone successfully employing chaotic techniques will keep such valuable information to themselves (now there's a surprise!).

All this talk of chaos, and no-one has yet mentioned strange attractors. You know, nightclub babes who hang out (occasionally) with their minging friends just to attract members of the opposite sex for them :D
(I wonder if John M's rotund females employ such chaotic techniques of attraction - something about beauty being in the eye of the beerholder)
 
Quote from Equalizer:

All this talk of chaos, and no-one has yet mentioned strange attractors. You know, nightclub babes who hang out (occasionally) with their minging friends just to attract members of the opposite sex for them :D
(I wonder if John M's rotund females employ such chaotic techniques of attraction)
More...
Sort of like this?

20040908a.jpg
 
Dude, you must hang out in "special" nightclubs. :cool:

Nighclubs don't quite allow that dresscode for women in my neck of the woods (although it comes pretty close in summer)...
 
Quote from prt_systems:

... well.... I dont think this picture can compete with the previous one but here it is anyway .....
More...

LOL, check out the bifurcations on that one :D
 
You must log in or register to reply here.
Back
Top