Comment: Chaos theory : when present determines the future, but...

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Cyril's picture

Chaos theory : when present determines the future, but...

Chaos theory :

when present determines the future, but approximate present does NOT approximately determine the future.

Even simpler than the butterfly effect, a double rod pendulum showing chaotic behavior [WP link] :

[Double rod pendulum]

"Starting the pendulum from a slightly different initial condition would result in a completely different trajectory. The double rod pendulum is one of the simplest dynamic systems that has chaotic solutions."

The case for chaos and market behaviors because of intrinsically approximate present :

if one's present knowledge isn't in fact only approximate re: markets, who exactly can claim to know about absolutely everything going on in everybody's minds, everywhere, in omniscience, to predict the future any how?

Let's just stay safe and stick to the basic sound principles that are known to hold repeatedly over chaotic times.

"Cyril" pronounced "see real". I code stuff.

http://Laissez-Faire.Me/Liberty

"To study and not think is a waste. To think and not study is dangerous." -- Confucius