Do you believe in the fractal nature of the stock market?

Discussion in 'Trading' started by smile, Oct 23, 2015.

  1. kut2k2

    kut2k2

    The markets are pseudo-fractal or fractal-like. The closest analogue would be the coastline "fractals" which, like the markets, are nonrepetitive but similar. Of course the biggest difference is that the markets have a smallest size. There is no scale smaller than tick-size. Still there may be something about fractal math that is applicable to markets. Mendelbrot thought so.
     
    Last edited: Oct 24, 2015
    #31     Oct 24, 2015
  2. J_Smith

    J_Smith

    To all, in relation to trading - what is the most relevant piece of information you take from this very good documentary - you have to watch the whole episode, which I think is well worth watching.

    J_S

     
    #32     Oct 24, 2015
  3. dartmus

    dartmus

    The repetitive logic within the robotic logic circuits of machines continually applying their edge is responsible for the only possible non-random (fractal) component of price. Price is fractal only because logic is fractal. Price is fractal only to the extent the best logic works on all timeframes. The non-randomness of markets is a byproduct of consistently applied persistent logic.

    The rest of the randomness can't possibly be fractal. Even tho random data like what can often be found in price coincidentally exhibits similar looking features to non-random data ...it's not created by logic or constrained except where it triggers the action of rule based traders.

    NON-discretionary traders exist on all timeframes and often consider a spectrum of timeframes before entering or exiting.
     
    Last edited: Oct 24, 2015
    #33     Oct 24, 2015
  4. Turveyd

    Turveyd

    Wave only work, after the fact, ZERO predictive value, so guess we can ignore all of that sorry!
     
    #34     Oct 24, 2015
  5. J_Smith

    J_Smith

    Screen Shot 10-24-15 at 08.45 PM.PNG Screen Shot 10-24-15 at 08.48 PM.PNG
     
    #35     Oct 24, 2015
  6. J_Smith

    J_Smith

    Screen Shot 10-24-15 at 08.53 PM.PNG Screen Shot 10-24-15 at 08.56 PM.PNG
     
    #36     Oct 24, 2015
  7. Mysteron

    Mysteron

    Image1.png
     
    #37     Oct 25, 2015
  8. J_Smith

    J_Smith

    If the video is blocked MN, you should find it on youtube, as there are a few good documentaries there bout same. Mr Brown is a very clever person and would make a great pope :)

    As for Da Vinci, it appears he used one side of his brain more than the other, which explains why he was what he was !

    J_S
     
    #38     Oct 25, 2015
  9. J_Smith

    J_Smith

    I would not go that far, as the very clever people who code the algos and such, can only work from a base of what is made available to them!

    To close your mind, is to make yourself blind.

    J_S
     
    #39     Oct 25, 2015
  10. J_Smith

    J_Smith



    [​IMG]

    "A fractal is a never-ending pattern. Fractals are infinitely complex patterns that are self-A fractal is a never-ending pattern. Fractals are infinitely complex patterns that are self-similar across different scales. They are created by repeating a simple process over and over in an ongoing feedback loop. Driven by recursion, fractals are images of dynamic systems – the pictures of Chaos. Geometrically, they exist in between our familiar dimensions. Fractal patterns are extremely familiar, since nature is full of fractals. For instance: trees, rivers, coastlines, mountains, clouds, seashells, hurricanes, etc. Abstract fractals – such as the Mandelbrot Set – can be generated by a computer calculating a simple equation over and over.similar across different scales. They are created by repeating a simple process over and over in an ongoing feedback loop. Driven by recursion, fractals are images of dynamic systems – the pictures of Chaos. Geometrically, they exist in between our familiar dimensions. Fractal patterns are extremely familiar, since nature is full of fractals. For instance: trees, rivers, coastlines, mountains, clouds, seashells, hurricanes, etc. Abstract fractals – such as the Mandelbrot Set – can be generated by a computer calculating a simple equation over and over."
     
    #40     Oct 25, 2015