|
PureBytes Links
Trading Reference Links
|
>I think that this "math" is the mark of a true genius. Only other true
>geniuses are meant to understand it. Don't worry. Some day we will look
back
>and thank John for his contributions.
blaine,
Any kid who took and passed high school geometry should know that if you
change the scale from linear to semi log or vice versa, you will change the
angles measured. This change in the angles will have an effect on the
sines/cosines that is used in further calculations.
Maybe the changes in the angles are so minute that it has no effect on the
system and the systems' results. If the changes has no effect on the
mathematics involved, should the mathematics be there? This calls into
questions the logic behind the mathematics involved.
On another note, since this math is used on the financial markets, which is
are complex, non-linear systems,small changes should have a huge effect
further down the road. If you change the initial conditions, there should
be a huge change futher down the road, especially on complex,non-linear
systems such as the financial markets. And you cannot use linear
measurements such as sines of angles on a non-linear system (the fact that
we have gaps at the open, huge price changes on an employment reports on the
bond markets,etc., proves that the financial markets are nonlinear,
discontinuous data sets. ). You can use sines on the dominant cycles but the
cycles are inherently a part of the nonlinear,complex system(i.e. the cycles
are created by the markets).
What I'm trying to say is this: If you use a linear scale while I use a
semi-log scale, 12 months from now, if we both use and don't change the
initial conditions (inputs), you and I will have totally different results
with the same system. Even if it is profitable, the mathematics behind it
are questionable at best and over a long period of time, will collapse onto
itself.
I'd say code the system in ELA and backtest it further.
|