Using Scaling Laws For FX Trading Models: A Two-Dimensional Extension by Richard Poster, PhD
Previously, we looked at how scaling laws can be used to predict the behavior of forex (FX) data. In this follow-up article, we look at how scaling laws can be extended into two dimensions: volatility and price change thresholds. Now, using two-dimensional scaling laws, an even more accurate prediction of expected returns can be made. Find out how.
The jagged coastline of Norway, an old oak tree, and the EURUSD time series have at least one thing in common—they all have fractal geometries. This means they have the same form or structure when viewed at different scales ...