the market is a NP complete problem
- NP-completeness (wikipedia link)?
- or about Mathematics in Metatrader 5?
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.
- en.wikipedia.org
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
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.
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.
- Free trading apps
- Over 8,000 signals for copying
- Economic news for exploring financial markets
You agree to website policy and terms of use
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