Chaos Theory in trading. The Holy Grail?

Trading Discussion
1

I know I know, the holy grail doesn’t exist.

I ask this as I have been offered “the chance of a life time. The chance to become one of the 5% that succeed on Forex” (sound Familiar Cough)

This guy has an interesting back story. He claims he was a computer programmer asked to make an Automated Trading system that uses a Chaos theory algorithim. His story says he created a system that has a 0.2% drawdown and an equity growth of over 16000%

His sales pitch does not send you the actual system, nor the algorithim he used, but sets up your computer to copy his trades for you (hidden in the fine print)

Reading around various websites/google searches it is possible to see that chaos theory is in the financial markets. Two Physists made millions on stocks using Chaos Theory.

I was wondering if any others have any experience with Chaos Theory/Neural Network/Algorithmic Trading and know if its a possibility to work as a trading system.

Regards
Jareth

Ps, reasonably sure that the attempted sale of the trading system was a scam. The need to copy trades, not execute your own killed it for me

2

And how much does he ask for it?

With such returns I hope he’s a millionaire by now.

If it sounds too good to be true, it probably is. Honestly I don’t see the need for him to sell such an amazing system.

There are many sources out there for free where you can learn to fish, rather than getting the fishes from someone else.

Personally I wouldn’t pay this guy a dime, and I’m sure the majority in this community will give you the same advice.

All the best!

3

He is asking for $181.47 NZD
He claims he is a millionare
And funnily enough he isn’t actually selling anything. He just lets you copy his trades.
Im not planning on buying his system.

BUt I actually posted this asking if anyone knows about Chaos Theory and applying it to forex Trading

4

Ok, I skipped that part in my previous post, I apologise for that, I guess I was so into the price part.

Honestly I’m no proficient at all with it. Recently I started reading about it since some other poster in the forum mentioned it, but I don’t feel myself with enough elements to start even discussing it, let alone giving advice about it. Sorry.

5

A few points for you to ponder.

Forget “chaos theory”, and the “algorithmic” buzzwords, let’s just look at the situation from a pure logic point of view.

The fact that he is asking for $181.47 NZ tells us he’s selling something. Try to convince your credit card company otherwise.

And if he’s a millionaire, why would he need your paltry $181.47 NZ dollars? This isn’t a benevolent business. A 16000% return would render that amount absolutely inconsequential.

And furthermore, why would he want “x” amount of people to be copying his trades?

One could argue that getting a mass of people together trading the same way, at the same time. could theoretically cause bigger market moves for him. BUT, there is the factor of getting that many entries filled at the same price, and slippage as all those same trades try to close so close together.

And the last point.

16,000% ROI sounds too good to be true.

Therefore, it probably is…

6

I was reading throguh the posts and was getting ready to comment, then I came across your post. You nailed it! Nothing left for me to say.

7

Oh boy another one to call Mr. Geithner and help him out. Did the dems and gop go cuddling now btw.? Eur looks a little flat today.