Identifying Start and End of Trends
ChaosMonitor™ is a quantitative investment research service focusing on precursors to high-impact market events. Our approach originates from advanced research in nonlinear geophysics.
Unlike proponents of the mean-variance investment paradigm, we believe that most of 'fat tail' market events are not caused by some exogenous factors but are emergent properties of the system itself, and their precursors can be identified. The source of predictability is mathematical properties of a complex nonlinear system approaching a phase transition.
A phase transition point is when markets sharply change their behaviour from mean-reverting to strongly trending or vice versa. We identify approaching critical points by monitoring several nonlinear statistical properties of the financial time-series. The properties are scale-invariant, and can be detected on intraday, daily or weekly data etc.
ChaosMonitor delivers trade opportunities and risk alerts in real time on your desktop browser or a mobile device.