tsokakis do you use some non linear dynamic stuff in trading? are the markets CHAOTIC in the mandelbrot-feigenbaum sense? well, maybe to general a question ....
No, I have never used any chaotic model. The markets appear to have nonlinear behavior in general, it is quite close to reality, BUT, when you trade a stock [or a small group of similar stocks] there is no guarantee that this stock has the same direction with the market. On the other side, the theoretical results need a wide time frame [5 years or more, to have more than 1000 data] . The time frame of a trader may be quite smaller...
A couple of comments: - the book that generated the "Awesome Oscillator" claimed to be about Chaos but was really about selling. - there may be such behaviour in the market (in that as you drop down timeframes you see chaos like repetition of patterns with minor variation). - I spent years examining complex ideas, buying thousands of dollars of books (and I skipped most of the really expensive ones), and buying expensive systems ... and, eventually, I became consistently profitable using the simplest of ideas. FWIW, if anyone is reading this thread seeking the holy grail, you might try such simple ideas as you find in: - NQoos site with the floor traders system and his advice at dacharts on how to become profitable - Chick Goslin's Trading Day by Day - Trend compatible ideas from John Hill's The Ultimate Trading Guide - Stan Weinstein's Secrets for Profiting in Bull and Bear Markets Then all you have to overcome is yourself (see Mark Douglas ) Good Luck to you in your quest. So much for a couple of comments
Yes, the "Awesome Oscillator" can be found in the book by Bill Williams known as Trading Chaos. In his subsequent book, New Trading Dimensions, he added a filter known as the "Alligators" because I think his system is generating a lot of whipsaws in quiet and non-trending market. There is nothing new under the sun and he just uses different names for the same thing. His "Fractals" are actually just swing highs etc. Agree also that Chick Goslin's Trading Day by Day is good. In fact, it is one of my Recommended Trading Books