Is market mathematics still fractal mathematics once bots are trading?
This is a question that traders often ask. Since much of fractal based technical analysis is based upon the fact that human activity – as biological activity – must in some way correspond to fractal geometry and mathematics. So, when human activity is replaced by bot activity – doesn’t this move you away from fractals? A good analogy is probably the study of stochastics and using computers to generate random numbers. Since all random number generators have been created by humans, they can never be truly random. This is why some developers of software to generate random generators have actually included real events in the loop – things such as having an algorithm to analyze or produce strings of digits from a spectral analysis of some truly random event like smoke. They can place a spectrophotometer at a smokestack and turn the randomness of the smoke into truly random numbers. The same can be said about bot trading – in essence, all of these bot trading programs have again been program
