|
PureBytes Links
Trading Reference Links
|
Kevin Morgan writes:
> Might it be possible to:
>
> - build a canonical set of "phase behavior" patterns for a given
> market, or even for "all" markets;
>
> - have an algorithm for "early detection" of probable phase change
> and what the new phase type is;
>
> - select the trading algorithm best suited to the likely phase type;
>
> - execute that trading algorithm, and make real time adjustments if
> the phase identification component changes it's mind about what's
> up.
It _might_, however...
This sounds a bit to me like a classic chaotic system. (And not just
me, many others have written texts to the same subject.)
Having said that, and knowing that chaoitic systems are _extremely_
sensitive to context, to the point of being Heisenbergy, would not doing
something given a recognized pattern be enough to change it, thus
rendering your analysis and pattern recognition moot?
I'm no scholar in such things, so I may be grossly over simplifying (or
complicating) the problem, but it seems to be that phase behaviour is
either too chaotic to try to 'capture', or it's just another name for
something that chartists (et. al.) have been trying to do for years.
One man's (not too terribly informed) opinion.
--
========================================================================
Indecision is the basis of flexibility
http://www.unixgeek.com/cgi-bin/motd.pl - PGP email preferred
|