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Group:
>> I only have an inkling about the meaning of Chaos Theory as per an
>> example known as the 'butterfly effect'. Which one book out there is
>> best regards any practical application to using Chaos in trading?
>> Comments on this subject from experienced users? Thanks for any=20
>> feedback.
>>
>> Charles
>
>I don't believe such a book exists. As for the butterfly effect, it is a
>hoax. See
>
>http://www.teleport.com/~znmeb/buttrfly.htm
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DISCUSSION:
I read the discussion at the web site that Mr. Borasky cited.
Uhhhhhhh.........Truthfully, I'm lost. It would seem that the aspects
of practical importance regarding the link between chaos and
short term market movements is that they (the noise in short term
market fluctuations) are random. HOWEVER, if that is the case,
and market lore has long suggested this is the case, it does not
explain how and why some day traders and short term traders
maintain a 70% win percentage. I cited LBR in a previous post.
Marty Schwartz says he likes to be right 7 or 8 times out of 10.
Most of you have also probably read about one trader in "Market
Wizards" (Weinstein?) who says he is right on--was it 80 to 90
percent of his trades? Again, I'm not sure I understand what I
read but when the words like 'noise' and 'random' appeared I can
relate that to intra-day market price fluctuations. Comments?
Charles
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