Hmmmm, signal analysis has been consistently getting me pretty far, but then again maybe it's the mean-reverting nature of interest rates.
Correct! Although p-adic metric is probably false. Simply, Spinors that have embedded Lie groups in them. The continuous groups are not translational, but rotational. This also explains why fractals apply to markets (although almost everyone applies it wrong). We are interested in similar triangles, and therefore distance is not correct.
I know it's an old quote but interesting nonetheless. Not asking you to spill the beans, but are you talking high frequency or low, i.e. a transform of the past few minutes or the past few weeks? Also curious if your experience has continued to support that statement now six years on? Thanks.
After reading through all the posts in this thread a few times, reading wike a few times on Lie, I still do not have any idea what it is and how to apply the concept. Can you explain in simpler terms what you are talking about here and how can I use this for a profitable trade?
If you take anything from this thread, you should take away that "distance", e.g., correlation in price, is a poor way to implement trading systems. Phase should also play a very strong role. Look at the two triangles above, the important thing is that they are similar. That one is bigger than the other is irrelevant if you scale one into the other using a simple scalar multiplication. The reason I like to think in terms of Lie Group/Algebra is because all of my systems are in continuous matrix forms, and since there is a natural (although hidden) manifold in which price is embedded and evolves, Lie Theory applies.
Thank you nitro for your reply. Still sounded like Greek to me , but I think I understand correlation in price and similarity. I think I also appreciate price and price forecast are embedded information and am trying to find a way to exploit that without all the fancy mathematics. Regards,