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Old 29-11-2006, 13:01   #65
TraderABC
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Re: Are currency markets random?

Again and again I am testing one system after the next, and the results aren't that good.

Does anyone know any good, working programs that can calculate the data series (Hurst Coefficient)? I keep searching and I am unable to find a working program that calculates things like "is there memory in the markets". I can't believe that there aren't good mathematical and statistical results available online.

As I am thinking and testing, it seems that the current performance is no gurantee of future performance. One can purely randomly win 10000 trades in a row, over 30 years, and all of that will be due to luck (which few of us have) or lose it all the next year or so.

Maybe this is one of the reasons why there are so many "good" systems available yet so few people come out profitable year after year.

I am NOT denying that things such as high volatility during highly active hours, conversion of currency, bank, geopolitical, and supply/demand events shape the price movement. I am also not denying that what seems random might be non-random (atleast to God) and that what looks like random walk may in fact not be one. What I am asking, is it possible to predict the market using TA?
Is there a price memory? Does the past influence the future market prices?
Since it may be impossible to distinguish (pseudo)randomly generated chart vs chart with a pattern. Since a person can have a winning streak (ALL due to mere chance) even for 10,000 trades. Since from statistical POV
sequence of 10,000 strait wins and 10,000 strait loses are AS likely as series of win-lose-win-lose... for 20,000 repetitions it seems that the definite answer can be found through science, and mathematical/statistical analysis. So to repeat, does anyone know any links where I can download a program that will accurately calculate autocorrelation, hurst, etc of a series of numbers? Thank you all in advance.
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Old 29-11-2006, 13:52   #66
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Re: Are currency markets random?

The attachment partially how I derive my cycle analysis. Markets are not random and follow a set pattern that repeats over a set period of time, in this case a certain multiple of lunar months. By comparing historical charts of this set period of time, one can obtain an average date of turn points in relation to the day of the full moon. The attachment show 5 charts of one lunar month of gbpusd. Each chart is a set multiple of lunar months away from each other. Because of possible value of this info, I am not revealing the multiple involved. One can then average the high low swings and develope a "solution" which will work into the indefinite future. This solution I present is one of many as there are many lunar months that make up the entire cycle.
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Old 29-11-2006, 16:38   #67
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Re: Are currency markets random?

Quote:
Originally Posted by 4xis2ez
The attachment partially how I derive my cycle analysis. Markets are not random and follow a set pattern that repeats over a set period of time, in this case a certain multiple of lunar months. By comparing historical charts of this set period of time, one can obtain an average date of turn points in relation to the day of the full moon.

I was interested in Astrology once... Let leave aside the question as to "does it really work or not" .

a) The signals happen too rarely, thus little trades, thus there is very little statistical back tests.
With moon you can like get 2 signals in a month and with other planets it may take years.

b) There are too many complexities, for example:
what is the birthday of forex, and the currency pair. What is it true center? How can you construct a birth chart, and how will you draw transgression etc etc...
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Old 29-11-2006, 16:48   #68
4xis2ez
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Re: Are currency markets random?

Quote:
Originally Posted by TraderABC
I was interested in Astrology once... Let leave aside the question as to "does it really work or not" .

a) The signals happen too rarely, thus little trades, thus there is very little statistical back tests.
With moon you can like get 2 signals in a month and with other planets it may take years.

b) There are too many complexities, for example:
what is the birthday of forex, and the currency pair. What is it true center? How can you construct a birth chart, and how will you draw transgression etc etc...
This is not astrology! I have no idea how astrologers do their thing.
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