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I came across a set of pictures regarding a trading strategy using pure mathematics.

Normally, I am quite skeptic regarding any strategy that uses some sort of 'golden formula', but this particular strategy grabbed my attention due to its seemingly on-time behaviour.

Problem is: I cannot find anything about it.

I've contacted the author but he hasn't replied yet. Does anybody recognise it?

enter image description here

Apparantly it has something to do with Mandelbrot's fractal theory for stock markets. I found one article which is remotely connected to this: A Multifractal Walk Down Wall Street.

Any help is appreciated.

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  • The article won't tell you much about the picture. It only explains how to construct a "multifractal walk". Where did you get the picture though? – Raskolnikov Nov 18 '14 at 12:48
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    It's not hard to find a window in which any strategy looks plausible, especially when you're willing to accept error bounds approaching the whole movement of the stock during that period. (Assuming the lower graph shows what I'm guessing it does; unlabelled axes are pretty useless.) Remember the magic incantation: "Past results are not an indication of future performance." Can't hurt to research, but be extremely careful before/when betting on it. – keshlam Nov 18 '14 at 12:59
  • @Raskolnikov In a LinkedIn discussion. Keshlam: I know what I'm doing. Your comment is trivial: I would like to see if this strategy can improve the timing of my own strategies. Of course I'm careful before applying :) Regarding past performance: how else are we to make forecasts? Sure any timeframe may look favourable but regarding the forecasting of stock prices: historical data is all we have. – Jean-Paul Nov 18 '14 at 13:05

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