Modern science advantage
ChaosMonitor™ is a quantitative investment research service focusing on precursors to high-impact market events. Our approach originates from advanced research in nonlinear dynamical systems.
Complexity theory, chaos theory and dynamical systems theory are names of related branches of applied mathematics that deal with behaviour of systems that are characterised by complex interaction between their parts with multiple nonlinear feedbacks, and by the system's future states dependence on its current state.
Weather, earthquakes and financial markets are examples of such systems. We can apply methods from the study of thermodynamic phase transitions and discrete scale-invariance of real-world physical systems to financial time series to find pockets of return predictability
It has become possible to identify specific states of the system (critical points) that lead to radical changes in its behaviour (phase transition).
ChaosMonitor™ model analyses several scale-invariant properties of financial time-series, namely logarithmic divergence of time series and their log-periodic oscillations that converge at the "rupture point".
We utilise state of the art AI technology to reduce prediction noise and produce actionable trade ideas and risk alerts in real time across multiple asset classes, geographical markets and investment/trading horizons.
Identified extremes of local currency weakness during Turkish Lira crisis of 2018.