Using Scaling Laws For The Development Of FX Trading Models by Richard Poster
Can the fractal properties of financial time data be used to develop effective trading models? Here’s a look at using scaling laws, which describe fractal behavior, for the development of trading models for forex.
Scaling laws arise from systems that have a fractal geometry. Fractals are self-similar systems. What is a “self-similar” system? If a scale is the level of detail as we look at an object, then a self-similar object still looks like itself at different scales ...