Many Systems
Visitors to this site may have noticed that there are many other systems around which call themselves fractal trading systems. There are seminars, videos, CD-ROM products, books...even a fractal indicator add-on for a popular price chart software. We don't deny that these systems might have some feature which justifies calling them fractal systems, as opposed to just being another set of techniques for technical analysis. But is any of this stuff any good?
Too Many Indicators
Anyone who spends some time studying the mathematics of fractals will encounter terms such as Hurst exponent, rescaled range (R/S) analysis, kurtosis, power law distribution, fractional dimension, spectral analysis, etc. These are all proven, scientific concepts that have been fundamental to the understanding of the field of fractal geometry, and indirectly to the field of finance. However, their usefulness is in studying price data after the fact to see if a fractal hypothesis effectively explains the behavior of a financial instrument. None of them are useful as trading indicators. They were never intended to be. They just tell you if the markets had fractal properties in the past. At the end of the day, they face all of the same difficulties that plague 99% of other technical indicators. See this for more.
Big Picture Thinking
No matter how sophisticated the math sounds, another indicator is just another indicator. Trading successfully requires two ingredients: a good model for the market process and a comprehensive system based on that model. At iSigma, we have both. Other "fractal" products are often just conventional indicators such as moving averages with an extra feature such as Hurst exponent thrown in as an afterthought. We take a totally from-the-ground-up approach. Our system is a complete trading strategy where every indicator and algorithm comes from a fractal view of the markets.
Get Started
If you are considering some other product advertised as a "fractal" indicator or system, please make your decision wisely. We offer free trial subscriptions to anyone interested in our fractal trading method.
