Advanced Trading Course Vol.

1
Introduction to Fractal Trading

Introduction
 Nonlinear Dynamics

1 - Functions

2 - Iteration

3 - Attractors & Repellers

4 - Time Series Plots of Dynamical Systems

5 - The Geometry of Iteration

6 - Iteration of Linear Functions

7 - The Logistic Equation

8 - Parameter Variation in the Logistic Equation

9 - Chaos From Order

10 - The Butterfly Effect

11 - Simulating a Price Chart with the Butterfly Effect

12 - Bifurcation Diagrams

13 - Universal Properties of Chaos

14 - Predictable Unpredictability

15 - Randomness

16 - Conclusions about Chaos and Financial Markets

 Fractal Geometry

17 - Introduction to Fractal Geometry

18 - Mathematical Fractals & Iteration

19 - Mandelbrot Set

20 - The Chaos Game

21 - Fractal Dimension

22 - The Fractal Geometry of Price

23 - The Hurst Exponent

Standard x Fractal Finance

24 - Introduction to Standard Finance

25 - The Markov Process Assumption

26 - Brownian Motion

27 - Supply & Demand, Brownian Motion & Randomness

28 - The Gaussian Assumption

29 - Einstein, Hurst & Volatility

30 - The Efficient Market Hypothesis

31 - Fractal Finance
Introduction

"Welcome to my Advanced Trading Course, where we'll

explore the fascinating world of nonlinear dynamics, fractal
geometry, and standard finance, and how they can all be
applied to trading in financial markets.

In this course, we'll begin by introducing the concept of

nonlinear dynamics and its importance in understanding
complex systems. We'll cover key topics such as functions,
iteration, attractors, and repellers, and how they can be
used to analyze and predict market behavior.

We'll then delve deeper into chaos theory and its

relationship to financial markets. We'll explore the butterfly
effect, bifurcation diagrams, and universal properties of
chaos, and how they can help traders better understand
market volatility and unpredictability.

Moving on to fractal geometry, we'll introduce the concept

of mathematical fractals and how they're used to analyze
patterns and structures in the market. We'll explore the
famous Mandelbrot set, the chaos game, and fractal
dimension, and how they can help traders identify trends
and potential trading opportunities.

Next, we'll look at standard finance and its role in trading.

We'll cover topics such as the Markov process assumption,
Brownian motion, and the Gaussian assumption, and how
they're used to model market behavior and forecast trends.

Finally, we'll introduce fractal finance, a newer field that

combines the insights of nonlinear dynamics and fractal
geometry with traditional finance theory. We'll explore how
fractal finance can help traders gain a deeper understanding
of market dynamics and make more informed trading
decisions.

Overall, this course is designed to provide you with a

comprehensive understanding of the tools and techniques
used in advanced trading. Whether you're a seasoned trader
looking to expand your knowledge or a beginner just
starting out, we're confident that you'll find this course both
informative and engaging.

So let's get started and discover the exciting world of

advanced trading!"

Nonlinear Dynamics

1.Functions

One of the foundational concepts of nonlinear dynamics

and a key tool for analyzing complex systems like financial
markets.
So what is a function? At its simplest, a function is just a
mathematical relationship between two sets of values - an
input and an output. For example, we might have a function
that takes an input of temperature and returns an output of
pressure, or a function that takes an input of time and
returns an output of position.

Functions can take many different forms, from simple

linear relationships to more complex nonlinear
relationships. But regardless of their form, functions play a
key role in understanding how systems change over time.

One of the key concepts in nonlinear dynamics is iteration,

or the process of applying a function repeatedly to its own
output. This process can lead to some surprising and
fascinating behaviors, such as attractors and repellers.

Attractors are points or sets of points that a system tends to

gravitate towards over time, regardless of its starting
position. Think of a ball rolling down a hill and settling into
a valley - the valley is an attractor for the ball's position. In
financial markets, attractors can represent stable trends or
patterns that traders can use to identify potential trading
opportunities.

Repellers, on the other hand, are points or sets of points

that a system tends to move away from over time. Think of a
ball rolling up a hill - the hilltop is a repeller for the ball's
position. In financial markets, repellers can represent areas
of high volatility or risk that traders may want to avoid.
To better understand the behavior of functions and their
associated systems, we often use time series plots. These
plots show how the output of a function changes over time,
and can reveal patterns and trends that might not be
immediately apparent from looking at the function itself.

Another key concept in nonlinear dynamics is the geometry

of iteration. This is the study of how the output of a function
changes as we apply it repeatedly over time. By visualizing
this process, we can gain a deeper understanding of the
patterns and structures that emerge in complex systems.

One classic example of the geometry of iteration is the

logistic equation. This equation describes the growth of a
population over time, and exhibits some fascinating and
complex behaviors as we vary the parameters of the
equation. These behaviors include periodic cycles, chaotic
fluctuations, and even the emergence of attractors and
repellers.

Chaos theory is another important area of study in

nonlinear dynamics, and one that has important
applications in financial markets. Chaos refers to the idea
that even seemingly simple systems can exhibit
unpredictable and complex behaviors over time. This
unpredictability can make it difficult to predict market
trends and patterns, but it can also create opportunities for
traders to capitalize on volatility and uncertainty.
One key concept in chaos theory is the butterfly effect. This
refers to the idea that small, seemingly insignificant
changes in a system can have large and unpredictable
effects over time. For example, a minor change in interest
rates or investor sentiment can snowball into a major shift
in market trends or patterns.

To better understand the butterfly effect and its

implications for financial markets, we can simulate a price
chart using the logistic equation and observe how small
changes in the equation's parameters can lead to wildly
different outcomes over time.

Bifurcation diagrams are another useful tool for studying

chaotic systems. These diagrams show how the behavior of
a system changes as we vary one of its parameters, and can
reveal complex patterns and structures that would be
difficult to discern from time series plots alone.

Finally, it's important to note that chaos and

unpredictability are not the same thing as randomness. In
fact, chaos can create patterns and structures that are often
mistaken for randomness. By understanding the difference
between these concepts,