The Skinny on Options: Abstract Applications - February 22, 2021 - Chaos Theory in Trading
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English - February 22, 2021 15:47 - 16 minutes - 248 MB Video - ★★★★★ - 173 ratingsInvesting Business Education How To Homepage Download Apple Podcasts Google Podcasts Overcast Castro Pocket Casts RSS feed
Previous Episode: Market Measures - February 22, 2021 - Defining Risk in Low IV
In high-level mathematics, Chaos Theory attempts to describe the level of erratic behavior in a system, where more unpredictable results from a given input change denote more chaos in the system.
Well, as we say all the time at tastytrade, the markets are totally random and completely unpredictable, or in the world of mathematics, extremely chaotic. As a result, we must remember that we have no control over how a given trade or series of trades will perform, but instead we must focus on what we can control - order entry and adjustment mechanics.
Peter Kattan’s research - https://www.researchgate.net/publication/289996762_Chaos_Theory_Simply_Explained