Posts by elong

Fractal Dimension Index

»Posted by on Mar 3, 2013 in References | 0 comments

by Erik T. Long Welcome to the world of Chaos. What is Chaos? Chaos is lightening, weather patterns, earthquakes, and financial markets. In short, Chaos is a nonlinear dynamic system that appears to be random when in effect is a higher form of order. Complexity is the point where the transition to Chaos takes place and is really what we are interested in when studying markets. Order and randomness exist simultaneously, allowing a degree of predictability. Both social and natural systems including private, governmental, and financial institutions fall within this category. People design these complex systems only to find that they take on a life of their own. Each of these networks is sustained by complex feedback loops, re-entering the system at...

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Futures Magazine Review of Fractal Finance

»Posted by on Feb 3, 2013 in References | 0 comments

Futures Magazine Review of Fractal Finance

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Managing Financial Risk with Fractal Geometry

»Posted by on Jan 15, 2013 in References | 0 comments

by Jay Sorkin and Shera Buyer Futures Magazine 08/2001

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Sierpinski Waltz

»Posted by on Dec 23, 2012 in References | 0 comments

Sierpinski Waltz

This educational material about Jay Sorkins Cash Flow Analysis Series is based on my personal interpretation of his work. I have had the pleasure to meet with Mr. Sorkin several times to discuss Chaos theory and its application to the markets. Although his methods differ in various degrees from mine, I believe it deserves serious study. Markets are now being viewed as complex adaptive systems to be studied in their total environment. The science that makes this possible is known as Complexity theory. Complexity theory includes a series of processes known as fractals, entropy, feedback loops and other events relevant to self-organizing adaptive systems. Market participants create this dynamic non-linear system by interpreting new information and making a...

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In Closing

»Posted by on Jun 3, 2012 in Shop Talk | 0 comments

This guide ends where it began, with the statement that it is not our intention to suggest either that you should or should not participate in futures markets. Low margins, high leverage, frequently volatile prices, and the continuing needs of hedgers to manage the price uncertainties inherent in their business create opportunities to realize potentially substantial profits. But for each such opportunity, there is commensuraterisk. Futures trading, as stated at the outset, is not for everyone. Hopefully, the preceding pages have helped to provide a better understanding of the opportunities and the risks alike, as well as an understanding of what futures markets are, how they work, who uses them, alternative methods of participation and the vital economic...

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