Do you see patterns in Random Walks?

Discussion in 'Technical Analysis' started by atlTrader666, Aug 10, 2011.

  1. MAESTRO

    MAESTRO


    Yes, but the existence of stable patterns does not at all contradicts the total randomness! As I pointed out earlier, it is the relationship between individual molecules behavior and their combined characteristic such as gas pressure in an enclosed vessel. Pressure is stable and very predictable (hence the existence of a steam engine, for example) where the paths of individual molecules are unpredictable and random.

    P.S. And, of course, patterns exist! otherwise we would not survive as species! However, the genesis of those patterns lies not in predetermined order, but in the self synchronized randomness.
     
    #411     Sep 1, 2011
  2. jem

    jem

    Ok that is all I wanted to hear.

    As a trader... why would I care if the final prints of the data set made the set look random... but I could make systematic money in between those final prints.
     
    #412     Sep 1, 2011
  3. MAESTRO

    MAESTRO

    If you continue to read this thread I will attempt to explain why it is crucial and very beneficial to accept and utilize the RANDOMNESS as the model. It actually leads to establishing of much stronger patterns that thought possible!

    P.S. Thank you for chiming in! I always enjoyed your posts on actual trading; there is nothing like a hands-on practitioner.
     
    #413     Sep 1, 2011
  4. MAESTRO

    MAESTRO

    We shall continue tomorrow. Today is my 27 th anniversary with my wife (could it be that long?????); need to get some flowers!

    Cheers,
    MAESTRO
     
    #414     Sep 1, 2011
  5. Randomness at what level of existence? If randomness as epistemological then randomness is inevitable because in a system as complex and riddled with approximate knowns as is the markets we can never know the way all the variables will interact; we're lucky if we can even know the descriptions of all the variables.
     
    #415     Sep 1, 2011
  6. Congratulations, Wishing you many more healthy and prosperous years together.
     
    #416     Sep 1, 2011
  7. Perhaps it's a matter of scale then?
    Also, if this not an unrelated or unresolvable tangent, is dimensionalism important? It seems like, it's random because we don't know what will happen in the future, but this could be due to human limitations of perceiving the time dimension as undirectional and not all observable at once. Would it make a difference if we were 10-dimensional beings, and the time dimension (from human perspective) was knowable all at once, as humans can see all points on a 2-d picture at once?
     
    #417     Sep 1, 2011
  8. Tried to delete, but over the time limit. I think this is a moot point -- if the dimension is knowable in entirety, then there is no "outcome".
     
    #418     Sep 1, 2011
  9. Maybe instead of 'dimensionalism', you really mean what statistician may refer to as degress-of-freedom.

     
    #419     Sep 1, 2011
  10. jem

    jem

    actually I take this statement back.

    When trying to figure out what the afternoon was going to look like during lunch...

    I was pretty sure that the least likely result would be a repeat of yesterday.
     
    #420     Sep 1, 2011