The Bible, Chaos Theory & CCI

 

Read before you miss fired!

"If you think taking time to educate yourself is worthless, then try ignorance" Mastering FOREX will surely need time and perseverance.” The Forexkid - Your forex ebooks provider

I was carried away with that statement when I visited that site as part of my reviewing what the site is because I joined the network: This works: Get 100,000 to see your forex site - Watch the Video Presentation

So I felt I should use it as an opening statement to start a fresh thread on how I have incorporated CCI to detect chaos in the market.

To re-echo forexkid’s slogan for this thread, I will say that if "you think reading this thread is worthless because I mentioned the Bible, or it is against your faith or belief, as recipe for handling chaotic market " please find other thread to educate yourself about the knowledge of chaos in the market.

In other forums where I tried to show people this concept, my threads are always hijacked by those who are ignorant and feel that they don’t believe in the Bible or hate God. The thread is not intended for debate about religion or belief or anything other than how to detect and avoid choatic markets. Let us keep it to that.

It is about how to detect

1 The Time when market participants are grossly irrational, reckless, disorder, sinful in their ways or investments practices; and

2. Time of stability and righteousness or to sow and invest.

I am not concern with what you are feeling or believe, but on isolation of the time when these market events occurred, and how to handle them using what is written in the Bible.

A Quick example: there is a thread going on somewhere in this forum asking whether it is the right time to invest in Banks because Warren Buffet's invested in G.S? This is the type of question the knowledge of chaos theory can help you to handled. We could have as well asked this:

Was Warren Buffet righteous or reckless in his buying shares of G.S this time in 2008? and the shares fell or lost 50% of its value by January 2009? Had he know that the shares could fall so badly, could it be better to invest at the right time instead of buying and holding it.

What is a Chaos Problem?

It is an art of separating or isolating instability, disorderliness, randomness, roughness, uncertainty, error, and fuzziness in a system, so as to harness righteousness, orderliness, and stability.

Within the context of financial market the goal is to isolate the time when market participants are engaging in unrighteousness, disorderliness or recklessness in their behaviours, so as to avoid falling into such errors and practices.

E.g: This time last year Warren Buffet called investors to start buying. Many followed him blindly and those who could not have money to defend their shares got margin calls and lost! Was their actions reckless, disorder and irrational?

Initially, I thought I got it right until 2008 when markets crashed down. The main market participants that the method I developed was imitating became more confused, irrational, reckless and disorganised in their trading practices. Most people who were following me just to grab easy pips left because we could not predict what market will do next after London session opened. It was a horrible experience for everyone.

The lesson learnt from the crisis is that current indicators cannot detect chaos in the market. Even the most successful trader like Warren Buffet doesn’t know what market will do next. But I did not give up the idea to pursue how to use chaos theory. Instead, I used the reaction of people to the 2008 crisis as means of refining the method.

For example, what do you do when the crowd have huge appetite to commit sins – market sins like greed?

What do you do when market participants are gripped with GREAT FEAR because they think market will leave them behind and hurriedly jump into the bandwagon like in the case of Warren Buffet buying G.S in October 2008?

What do you do when market participants have collectively agreed to disobey God’s principles of sowing and harvesting instead of taking profit at the end of a market cycle?

Do you start sowing at end of market cycle because everyone is sowing at a wrong time and because that is what Elliot Wave theory or Fibonancci theory or many other neo-classical economic theories recommends?

Crowd behaviour does not necessarily mean that they are righteous in their behaviour or practices. An entire nation or even the whole world can be collectively wrong or be involved in sin e.g. greed but thinking that they are right due to ignorance. The entire crowd out of ignorance could collectively agree that the market will still move higher in price level, when it is obvious that it is the end of the cycle.

What do you do in such circumstances? Do you go on and partake in such sins?

Where my critics are wrong

It is difficult to avoid errors in the market without reflecting on the stand of your belief or faith on such practices. It doesn’t matter what religion you belong to, you cannot be reckless with money entrusted to you, or be greedy in the market and still think that it is ok to do so because you hate the Bible that say it is wrong to be greedy.

Our Biblical concept of chaos theory doesn’t care what religion you belong to. You could be a Christian and failed to recognise that you are partaking in sinful chaotic market behaviours. It so happened that I am a Christian and the Bible has so much wisdom on how to spot errors in the market and what to do when market participants are grossly in errors in any system.

Though, I am not knowledgeable in other religions, that is, on whether they encourage their followers to commit sins, but anyone who treat market errors as sins can also avoid it from his/her trading chart once the chart is showing such tendencies.

Example: Before any investment decision we want to know whether there is righteousness or orderliness in the market, or whether there is disorderliness, uncertainty, recklessness.

Examining the behaviours of CCI in all branches or fractals of market structure can give us a clue.


As you can see in the above image, CCI shows that there is disorderliness in the market. We can then go to isolate the fractal where disorderliness exist and the nature of disorderliness. In this case fractal 3 seems to be the culprit.

Even without looking at the price level or candle sticks or any other indicator, there is a great strife - of fear, panic, rumours, uncertainty, false claims or expectations on the direction of the market.

Folks what do you do in a system filled with anger, voilent, greed and fear?

For me I will open the Bible to know what I should. Definitely, all religion and busineses have ethics and morals but such is lacking in market speculation. For me I will try to stay away until righteousness return to the market again. Until all CCI are singing the same song. This may take days, weeks, and even months as in the case of shares.

You do not need to be a computer programmer or a wizkid, or a guru, or wall street trader with 20yrs experience to detect when actions of primary market participants are transgressing God's principles of timing when to sow or harvest your investments. Just plugin MT4 and insert CCI, that is all, but you need godly wisdom to withstand what chaos report is telling you from your chart.

You could ignore it and all the counsel given in the Bible, and go ahead anyway to take the risk. Or you could wait for righteousness to return to the market as advised in the Bible. Either choice will produce result.

EDUCATE YOURSELF ON OUR CONCEPT OF CHAOS THEORY

Don't denied yourself of good knowledge and this breakthrough because, I got inspired with the Bible. It is still cheaper and more effective than going through therapies and pyschological training. Don't let your own thought keep you in ignorance that the Bible is old history book.

I have an extensive literature on the concept of chaos theory based on Biblical views and what to use as indicators of chaotic behaviours. This is available from my website. What I want to use this thread to do is to demonstrate how I am using CCI to isolate errors or disorderliness in the market which I have just shown above.

You can adopt Biblical views or any other religion views if you so desire to handle such errors once isolated, or you can reject the concept and simply fall back to trading in reckless and irrational ways using chance and probability to predict market outcomes even in the face of high degree of fear, panic, greed and errors in the market.

Don't just say I don't believe in it, say so with academic reasons. Do just submit to the old school that believes market cannot be predicted. You can predict when the main market participants are in errors.

- like Buffet was grossly wrong in October 2008 when he bough shares of G.S for 5 billion, instead of waiting to buy it at 2.5 billion or less. With Biblical principles you can predict the right time to sow and harvest any shares with all impunity if you have this knowledge and money to invest in sure shares.

Depending on how people trampled upon this thread, I will be sharing more insight on this in the future and also to give general weekly chaotic tendencies only for GBP/USD, in order to avoid what is already available.

Lastly,

"If you think taking time to educate yourself on this concept is worthless, then keep trying ignorance."

Files:
cci.jpg  38 kb
 

Strategy is to buy throughout the month of October. On this day (19th October) CCI shows that there is a general disagreement and whipsaws in the entire network, with fractal 3 and 4 exhibiting disorderliness.

General view:

1. Buy: Wait for CCI to wind down to lower levels in Fractal3 or buy now with stop loss below1.62420. The waiting may take entire whole day, it may not

2. If you are selling now, note that this is irrational, you are selling into a small panic event. Therefore use stop loss, until CCI wind down to lower levels in Fractal3.

More detailed hourly report is available to subscribers

 

No worries about thread hijacking here buddy... will be watching... Thank you for posting these info... keep the thread updated with new opportunities and trade analysis... btw.. forexkid is my site... glad the saying inspired you... because it inspired me as well...

 
bossxero:
forexkid is my site... glad the saying inspired you... because it inspired me as well...

Great!

Yes your slogan hit the nail on the head. But majority of people don't think otherwise but we spent time chasing quick fix indicators.

Of cause there is no quick fix except education and ability to learn how to separate wrong concept from good concept. Almost 90% of existing concepts of market speculations are wrong.

There is really nothing wrong with indicators, if we know they are lagging for example. That is how they were designed or met to be. If we keep using lagging indicators and expecting to spot market moves at the right time, then it is the user who is wrong.

 

Your method is interesting... I remember some years ago I tried working with similar strategy... I waited for the RSI to synchronise themselves on all timeframes before getting in the trade... however, as you said it yourself, it can take quite some time from days to weeks for this to happen... so I abandon the idea a few weeks later...

Regarding the example you showed above, after we have identified the fractal 3 to be the culprit, then what do we do? Would like to hear our insights in the future as well on the GU... you can also do daily analysis on your trades in a new thread in the JOURNAL section...

 
bossxero:
Your method is interesting... I remember some years ago I tried working with similar strategy... I waited for the RSI to synchronise themselves on all timeframes before getting in the trade... however, as you said it yourself, it can take quite some time from days to weeks for this to happen... so I abandon the idea a few weeks later...Regarding the example you showed above, after we have identified the fractal 3 to be the culprit, then what do we do? Would like to hear our insights in the future as well on the GU... you can also do daily analysis on your trades in a new thread in the JOURNAL section...

My second post on this thread is actually my analysis of GU for today. I made a mistake in my date instead of 19th October, I wrote 16th October.

The image attached for today's GU is different from the first post.

Once the isolation is done, e.g. Fractal 3, it means in that particular fractal, participants are unrighteous, reckless, disorderly, in their trading practices, and thus one should not take part in such reckless practices.

This is done in taking the season into consideration. For every matter there is time and season for them. Everything is Biblically inspired. You plant early and harvest late in a market cycle.

We are in October, it is an art of irresponsibility to start selling or harvesting in October. Which means Fractal 3 where CCI is showing overbought is an indication of fear and panic in the market. It is also an indication of recklessness, disorderliness, uncertainty or funzziness because it is irrational for people to be withdrawing from investing at this time

of the market cycle of 2009.

Nobody withdraws from good investment, if there is no fear or panic in the market. Such markets are also addressed in the Bible as land filled with, strife, disagreement, rumours, thorns and weeds, like today. The main participants don't just know what to do. For retail traders implementing my chaos theory strategy, they should know what to do, if they want to abide by the rule.

For example: a small retail trader who is trading a market filled with thorns and weeds is GREED or sins. taking part in irresponsible crowd behaviour is GREED. It is against God's wisdom in the Bible.

On question of how long one need to stay away from market.

This depend on the length of the Fractal inside the Monthly cycle or market structure. For example if Fractal 3 is a daily cycle, it means you will have to wait for the day to pass, if it is 5 minute fractal, it has to be 5mins. if it is a week fractal same you will have to wait for a week. The temptation not to take part in wrong crowd behaviour is very strong especially if you think that you will have to wait a whole day or week, but it is the reason why we lose money in the market, it is either we wait or we lose money along with the crow. The patience needed requires the Grace of God.

Alternatively you can take the most assured risk based on this year trading strategy.

Yearly trading strategy is also inspired by Genesis 8:22. For example until December, it is easier to sow than to harvest.

I guess you know we cannot do justice to the entire method at ago. CCI is the tinest aspect of the method.

The primary task is that it is possible to use choas theory to pinned down market behaviours using CCI as example, and avoid markets when the behaviours of traders are irrational and inconsistence with the Bible.

Yes I could keep giving GU analysis in a trade journal here as time allowed.

It is for benefits of all who want to educate themselves.

 

These are indeed words of wisdom...

8:22 "As long as the earth endures, seedtime and harvest,cold and heat,summer and winter,day and night will never cease."

The chicken we are eating everyday itself goes against the rules set by this verse.... Today chicken grows from chick to our plate within 45 days...

 
fxbroker:
My second post on this thread is actually my analysis of GU for today. I made a mistake in my date instead of 19th October, I wrote 16th October.

Today's trade based on the above marketchaos analysis for GBP/USD

returned 106 pips.

I will be providing live performance link via

I applied as signal provider via zulu-trade last Friday, my performance page is not live, as they want +30 trades.

You can access the same trade from

Fxpro

Account #: 1278161

Investor Password: d8mkque

As suggest by bossxero I will create a Journal on it by end of today.

 
bossxero:
These are indeed words of wisdom...8:22 "As long as the earth endures, seedtime and harvest,cold and heat,summer and winter,day and night will never cease."The chicken we are eating everyday itself goes against the rules set by this verse.... Today chicken grows from chick to our plate within 45 days...

The chicken we grows still have its time and season, which may be different from the time and season for the free range type.

When it is time for it to die, nothing stop it, that is when it appeared on your plate.

But in general investment follows the same principles of growing chicken, pigs, wheat, coffee, corn, whatever? all follows general economic cycle ending in December.

Most time people spend hell of time working out the underlying structure of markests........huummmm that is not necessary for retail traders. Just look at where main traders are going against the principle of sowing and harvesting. And avoid them until they come back to their senses.

Just take people investing in GBP/USD as futures and not over the counter like we trade it as retail traders. Invest in futures means they want their investment to grow and not to decline, but there will be a point in the time scale or market cycle when such expectations becomes unreasonable. That is recklessness.

Reason: