The important role of numerical analysis in the trading system
There is a tangible concept in Go, if you fall at will, Go is a disorderly chaotic system, because the rules of chess have been formulated, in the long-term game practice, chess players have gradually discovered some relatively fixed shapes, the most typical such as the corner formula, generally speaking, this response is a reasonable way to play.
It is a time function, multiple bars, or a selected group of **, there will also be countless forms, after long-term observation, this also contains some useful shapes, and their pointing meaning is relatively clear.
These shapes are useful and valuable information that must be defined as clearly as possible, not only in terms of the shape itself, but also in terms of the position in which the shape is located, which can be referred to the logic of the definition of dimensions, tolerances, shape-position tolerances and surface roughness in mechanical engineering.
From these descriptions, it appears that all things in the world are actually connected.
Number analysis has a very important position in the trading system, number is quantitative analysis, for the shape of the service, both are indispensable. Numeric analysis is based on detailed classifications, as well as mathematical concepts such as similarity, symmetry, inheritance, and so on.
There are two basic concepts of number analysis, the smallest complete shape and the perfect shape, which are also the shapes that can be recognized. Unrecognizable shapes can be summed up in a chaotic state.
The purpose of establishing digital analysis is to process and interpret the data purely, so that all other factors are abandoned. As long as you intend to establish an AI trading system, you must take this path. And everything is based on mathematical models, and nothing else.