Gold, Oil & Indices (Equity & Bond Indices)

@Catnip quite an interesting system your friend has. I guess it all depends on the "header string" being correct, bcos from there you could determine the shape of the rest of the structure if I understood what you wrote?? Does your friend have an algo to trade his view then on a DMA platform??

usikpa
yes Russians favor mathematics...my best friend is a very high level russian mathematician
and he has developed brilliant ideas on market coverage...but very advanced algebraic topology ( the totality of all markets is a topological space).
He is for many years a citizen of the US he didn't like Yeltzin that much and left...somehow.

Now the trade method of the US trader of commodities.
He just has a string of price changes down (d) no change (n) up (u). No prices only changes
greater equal less previous.
This yields a string of logical statements such as uunddduuu ... on this string he or rather the program searches for self-delimiting header strings , ( a theory of complexity by Kolmogorov)
these header strings contain the rest of the string up to particular length . That means , the market moves can be logically pre-determined from the header string, they result from a system of logic which , with the header string as its axioms, yield the rest of the string, the market changes. After some months of data collecting the program has created a number
of logical systems and is with very good hit rate able to forecast periods of low complexity of the market, that is, either mostly down, or up, and he trades the swings accordingly by going long or short and the system knows when to exit. It is basically a swing forecaster.
That's it in a nutshell. Of course that was some years of hard work to get such a
program done but it works well and one doesn't need to watch anything.

long usdcad 9970..messed up i think i shoulda played either audusd-eurusd as cad is strong vs eur or aud:(..awesome day on the markets:(..hopfully we can start gettn some bigger moves up:) gl:)

Catnip, go ahead, please!

if we had a trading method blog i could introduce an interesting method for commodity trading
invented by a friend of mine who trades only commodities spot ... he is a logician so... chartists won't get even the first word