So another trade and this time from last week. But the point I want to make here is simply how the mathematics does take care if things for us so we do not worry about risk and focus more on profit maximization. There is to be no consideration for “fundamental” or “technical” analysis when trading by chaos. When you do by bringing “technical” tools or “fundamental” concepts you will introduce errors and at exponential rates of change errors multiply by exponential speeds.
1. Look at where the week began last week. It was a week in which we had various events supposedly good/bad for Gold and the “conventional wisdom” in trading before chaotic analysis came into existence is that “news” and “events” move price. In fact I recall @josi say to me something to the effect of “if the news flow were different the flow or trend would be different” with respect to a comment made regarding the screenshot of my weekly plan. But we all agree that mathematics does not lie. What you see is what you get.
2. This is what mathematics says of chaotic space – “In mathematics, computer science and physics, a deterministic system is a system in which no randomness is involved in the development of future states of the system. A deterministic model will thus always produce the same output from a given starting condition or initial state.” Wikipedia
3. And we say that the market is a deterministic system. This means that the pattern or the market equation on which Orbit runs admits no randomness because it is the same equation that drives markets. So please observe my trades from slides one to three. This was an event day I think (I never check because I understand the meaning of the mathematical statement above and do not care what event is ahead since I am trading by Orbit). I understand that the signals and setup always reflect the trajectory of price exactly and that Orbit would not indicate as it does if it was not certain on the diagonal it is trading. And the diagonal is down TT = Cy = Red = down spot trend (high pivots in the FLE translate price lower).
4. Having no worries then about any surprises I woke up late on the day and could not take the up trade and in any case I knew I was missing nothing because i) Risk-Free space is negative and since market fractals are affine, price going up is counter cycle and counter cyclic moves in that space pay less than cycle so you can see I ignored trading until slide 2 when the cycle was on my side. As you can see the translation was pretty straight forward. But again the most important thing is the logic. I was trading the logic. A) Risk-Free Space was on my side, B) the nested structure of Orbit signals was on my side i.e. Level 1 (Cy = TT) and level 2 (Spot Arrow + Range Arrow) + Inverse on sign all agreed and was very clear what to do ----------> news or no news, event or no event Orbit is always correct because the market equation is always true.
5. We encourage people to think about the logic and its meaning of the things we say about space etc. Without understanding them and just trading signals blindly will lead you nowhere. The market is not stupid – why should it reward a lazy mind. Knowing the logic is the only thing that can give you confidence. Yes it may not be the same as you are used to e.g. where someone says to you when MACD is like this and price is like that enter. That is highly speculative and you will not win always. In deterministic trading we expect to win each trade simply because in fact we rely on solid science. But without understanding the logic or the science we are trading we become error prone and lose often.
The Crow (-_-)
PS: Look at the setup in Orbit and tell me how you can possibly go wrong going up or down in a space so well defined? Just one thing – tell me?
Re: A New Trading Game (chaos game) Played for Money and Played in Risk- Free Space
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