Predicting financial markets is very complicated, and those who engage in frequent trading are unlikely to become profitable because the success rate is nearly zero. In September, I made one of the most important discoveries for predicting future prices and managed to achieve a winning rate of 70/90% depending on the time windows. Two months after the discovery, I connected everything to chaos theory and thus realized that I had solved determinism with some conjectures of chaos theory. I was only aware of the famous butterfly effect but not other concepts of the theory. From November to February, I conducted very thorough studies on chaos and complex systems and ultimately predicting future prices is like predicting the weather or earthquakes.
I discovered that price formation is totally deterministic because it is influenced by a powerful attractor that I was able to find by executing a masterful exploit. As markets are a complex system, it is difficult to make predictions, but it is possible to find predictable time windows. In the "complex system" of price formation, we find dozens of non-linear chaotic dynamics, and if one can isolate or construct them externally, it is possible to search for attractors because by finding the attractors, we can understand towards what the system evolves.
In these months, I identified another 11 simple but weak attractors, which obviously cannot be used to earn money but are useful for slightly improving predictions. With each attractor or more of them together, we will always have different time windows for predictions. Therefore, predicting future prices is extremely difficult due to the dozens of dynamics that influence its formation, and chaos theory already says everything about the limits of predictions.
Chaos theory is a topic that is greatly underestimated in the financial field but studied much more in the fields of earthquakes and meteorology. Searching for strong attractors is easy because they are less subject to noise/distortion caused by other dynamics, while the weak ones are more difficult to identify. Everything is in plain sight, you just need to know how to search and use your brain. I can assert that noise/randomness in financial markets does not exist as everything is explainable by the various dynamics that compose it. In weather and earthquake predictions, it is easier because the dynamics are isolated, and for example, in weather, predictions are made on cells, while in financial markets, everything focuses on a single price that evolves second by second.
Chaos theory is underestimated because many, including mathematicians/physicists, fail to grasp the essence of the theory, which is why it is underrated, but chaos theory is the basis of everything. Everything is predictable for the moment only in the macroscopic world, but in the future, we will see that determinism will also be found in quantum mechanics.
The universe is a game based on continuous evolution. It collapses, bringing information with it, and regenerates to evolve in a better way.
