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Stop with discretionary trading. Join the machines

Here I add two screen shots with the Brain trend on the SP 500. In fact I do not venture too much away from the EUR/USD and the cable. However I got curious about the indexes. Here the fractal dimension is much lower than what we can observe in Forex. The key is to find a market or time frame where we would have the biggest Hurst Exponent (the lowest fractal dimension globally). And it looks like on indexes this is an important feature by now.

Look the spike, this looks correlated with what happened with the EUR/USD. Sharp reversals are typical for low fractal dimension state. This is called a black noise. I could call it a black noise reversal. On Forex factory I wrote about the Low Phase Space Singularity. This was some times ago. And this look like happening as a characterstic of the market. However this is just a theory. 

What is typical of that is that many different algorithms are able to find the same solution simultaneously and act accordingly. Imagine there is a space of the possible and correct solutions. If such a space exist many different but adaptive algorythms are going to find simultaniously the same solution. And then they would cooperate together because they all see the same solution. Imagine also that they live in the time of the miliseconds. So many things would happen in the blink of an eye. 

 The idea is that when we have a relatively simple phase space of the possible solutions the algorithms are able to find simultaneously a solution. The algorithms are able to cooperate, but the humans we do not cooperate (one guy think it is oversold, the other it is overbought, one guy has long term horizon the other has short term).And FGDI in red (below 1.5) at both 15 and 30 m. time frame is a good approximation of the possible Low phase space singularity.

 

If the humans form a Nerd behavior the Machines are forming SUPER NERDS. The humans are forming a Nerd behavior mainly in SOME specific cases.

This is the case when we psychologically carry the losses. Psychologically we tend to close profits early and hold on losses longer. Periodicallly there is accumulation of orders at particular levels. And when the orders are a cascade movement occurs. This is very well explained by Olsen in his blog. It is called passive herding.

The second main scenario is when for some reason, mainly golden ratio, or major technical level we accumulate orders at specific levels. And this is all about in the group about the Oanda Oracle.

 

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От brain trend

 

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От brain trend

Comments

  • francisfinley 2982 days ago

    I can tell you my DAX robot out performs the best forex robot by 3:1

  • francisfinley 2982 days ago

    as you know i spent a long time working on brain trend & ssa - no joy on forex.

    maybe i will do better with it on DAX

  • CamaRon 2980 days ago

    FF,

    can you show us specs on your DAX robot?

  • JohnLast 2979 days ago

    Yes what is it about? I remeber you had some very profitable moments too ;).

    Brain Trend just can't work by its desing in high fractal dimension and low volatility situations. It just can't make it.

     

  • JohnLast 2979 days ago

    ARE YOU getting out of trades too early, getting in too late? 

    ARE YOU getting suckered into false breakouts ?
    ARE YOU GETTING FOOLED by the Market and professionals?
    ARE YOU GETTING IN, just as the Market goes the other way?
    ARE YOU REVENGE TRADING - Trying to make back losses?
    ARE YOU WISHING you hadn't taken a  trade that you did?
    ARE YOU OVERTRADING, REVERSING and Chasing the Market?
    ARE YOU MOVING your stop, only to take a bigger Loss?
    ARE TAKING BIG LOSSES because you won't "Give in"?
    ARE YOU Winning sometimes, but then giving it all back?
    ARE YOU TRYING the latest "INDICATOR" but it doesn't work?
    A BROKEN CLOCK IS RIGHT TWICE A DAY.....

     
    STOP THE MADNESS of LOSING MONEY - BECOME AN AUTOMATED....LOOSER 

    LOL

  • francisfinley 2978 days ago

    shit sorry never saw your post camaron...

    i started my dax stuff years ago - 2009. it was simple MA's and running them MTF to give one signal... ive just been refining it.... i find that the DAX is miles easier to have something making money than anything else.......

     

  • CamaRon 2978 days ago

    Good deal.

  • R Grahana 2937 days ago

    iVar, Entropy and then? purple and blue on the chart? what is that?

  • JohnLast 2937 days ago

    This is a special brain trend mod. You can download it from here.

  • R Grahana 2937 days ago

    Holy grail... NEAR!!

    Copy file "TestDBJ4 to my Metatrader Directory / experts"

  • R Grahana 2937 days ago

    Thanks again john!