Can market follows a deterministic mathematical law ?

Quote from man:

goedel? heard about him? from my understanding it is hard to claim in the post goedel world, that mathematics is able to fully describe nature - and what else could a phrase: "is the language of nature" mean?

mathematics is as much a language of nature as any other attempt of consciousness to grasp aspects of existence.

anything beyond is well-sounding promotion ...


peace

Maths!?

There are some books for discussing/researching many new directions/developments of future maths concepts/theories that are beyond the existing framework, due to its current limitations.

Sometimes I doubt if the existing maths framework can be good enough to mathematically and satisfactorily describe and resolve all our daily problems.

Just a thought! :confused:
 
even more goedel's work seems to indicate that there can NEVER be a complete mathematical description of the world ...


peace
 
Quote from Cheese:

The market, say trading the Dow index, poses a problem: to make a profit but preferably to build a quick fortune if you can do it. This stands alone .. and is only a 'problem solving' question.

What the human brain does above all else (and allegedly the male brain is best at this) is solve problems it wants to solve.
So this is not philosophy or anything other than a task. By extension it will almost certainly entail use of knowledge and experience.

So it is as simple as we should make it .. because the brain solves through the process of arriving at the simplest solution. By elimination it will move to a less simple solution if it does not arrive at a solution by the simplest means and understanding.

Now I suggest success in the market is simple .. but I am not saying it is easily or simply achieved; no, I am not. The key is asking the relevant questions and getting the relevant information that you need. Move to solving attempts and testing.

I can't crack the shell of this nut with my teeth but I will now pick up a rock from the forest floor and tap the shell. Yes, that works! Look with satisfaction at lovely released nut. Eat nut.

Repeat. Do so until you run out of nuts (ie the markets are closed forever or the SEC starts investigating your phenomenal success) or you are no longer hungary (ie you've now accumulated more money than Bill Gates).


Cheese I love your post.

I think this is one of the most intelligent, very very smart, common sense post I have ever read on ET.

Thanks
 
As I understand it, the market is an amalgamation of human behavior. The study of human behavior is deemed to be more of a "social science" than a pure or natural science. Mathematics is a pure science. Therefore, I don't think it is entirely appropriate to use mathematics as a predictive tool in the markets, which I infer to be the true nature of your question. On the other hand, mathematics/statistics are excellent "post-dictive" tools in that they explain what has already happened fairly well. Perhaps that is why curve-fitting and backtesting bring so much more joy than out-of-sample forward testing.

If the market (i.e., crowd) were able (and willing) to follow a "deterministic mathematical model," then mathematicians would be the most successful politicians and world leaders, or at least they would be top advisors to them. I don't think we're there yet. As far as crowd behavior is concerned, I don't think that the path of least resistance has yet been replaced by the math of least resistance.

Regards,

Thunderdog
 
..I believe another way to express what you said about Boolean algebra is that a fuzzy logic approach works in the markets: if this greater than that, and not the other greater than yet another, etc.
 
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