Darkdoji Feb 28 2017 at 07:52
When you hear talk about chaos and unpredictability it is not just about imperfect knowledge of initial conditions but a process intrinsic to chaotic systems that destroys the ability to guess the future very rapidly - that is what the butterfly effect really implies. In other words at exponential rates of change, small errors multiply at exponential speeds. Therefore, to effectively trade chaotic systems you must understand the fractal structure of markets enough to make the butterfly effect your friend (trend is not your friend in a chaotic system).