Engineering Alpha

Engineering Alpha

The Fractal Indicator — Detecting Tops & Bottoms in Markets

Insights from Chaos Theory Applied to Trading

Sofien Kaabar, CFA's avatar
Sofien Kaabar, CFA
Jan 08, 2025
∙ Paid

The efficient market hypothesis fails to account for the many anomalies and recurring exploitable patterns within financial assets. This is why active portfolio management is still the dominant party when compared to passive investing.

Financial markets are not perfectly random, they are random-like, i.e. they exhibit a low signal-to-noise ratio. In othe…

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