the market is a NP complete problem

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mrluck1
927
mrluck1  

I've been studying  about NP problems and i could say that if you have as little as 25 different candlesticks , and try to use combinatory optimization to find patterns

to beat the market, a really fast computer , that could do 1 billion loops per second, would take about 40 million years to discover the best pattern to beat the market, 

so the market is a NP complete problem, just like the travelling salesman problem. So you can just make approximations, and hope it to be good enough, just saying

Dua Yong Rew
5491
Dua Yong Rew  
What is NP?
Sergey Golubev
Moderator
106720
Sergey Golubev  

Multiple libraries are provided to perform calculations in various areas of mathematics:
  • Statistics — functions for working with various distributions of the Probability theory
  • Fuzzy logic — library that implements Mamdani and Sugeno fuzzy inference systems
  • ALGLIB — data analysis (clustering, decision trees, linear regression, neural networks), solving differential equations, Fourier transform, numerical integration, optimization problems, statistical analysis, and more.
NP-completeness - Wikipedia
NP-completeness - Wikipedia
  • en.wikipedia.org
Euler diagram for P, NP, NP-complete, and NP-hard set of problems. The left side is valid under the assumption that P≠NP, while the right side is valid under the assumption that P=NP (except that the empty language and its complement are never NP-complete) Although any given solution to an NP-complete problem can be verified quickly (in...
mrluck1
927
mrluck1  
Dua Yong Rew:
What is NP?

NP means non-polynomial. Some people think is easy to find patterns, but if you take only 27 candlesticks and try to find a pattern to predict the market you would have to 

calculate at least 6 * 10 to 23 different possibilities, even the faster computer in the world would take millions of years to close it, and 28 candlesticks, billions of years. I'm just 

saying that because i see people with faith in AI machine learning, i think thats not the case the data is to big to crunch, a brain will perform at least better 

Stanislav Korotky
25205
Stanislav Korotky  
mrluck1:

NP means non-polynomial. Some people think is easy to find patterns, but if you take only 27 candlesticks and try to find a pattern to predict the market you would have to 

calculate at least 6 * 10 to 23 different possibilities, even the faster computer in the world would take millions of years to close it, and 28 candlesticks, billions of years. I'm just 

saying that because i see people with faith in AI machine learning, i think thats not the case the data is to big to crunch, a brain will perform at least better 

Try Monte Carlo method.
mrluck1
927
mrluck1  
Stanislav Korotky:
Try Monte Carlo method.

No offense but if monte carlo aproximation works so well, why do you sell indicators? maybe it isn't that good. Anyway i'm just talking about how complex and difficult is the market. those aproximation 

methods depend on inefficiency  of the market, but you cant predict that too. 

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