QWERTY, the order of chaos (Pi: Faith in Chaos, 1998) and the stock market Maximillian Cohen : Restate my Assumptions:
One: Mathematics is the language of nature.
Two: Everything around us can be represented and understood through numbers.
Three: If you graph the numbers of any system, patterns emerge. Therefore, there are patterns everywhere in nature.
Evidence: The cycling of disease epidemics; the wax and wane of caribou populations; sun spot cycles; the rise and fall of the Nile.
So, what about the stock market? The universe of numbers that represents the global economy.
Millions of hands at work, billions of minds.
A vast network, screaming with life.
An organism, a natural organism.
My hypothesis: Within the stock market, there is a pattern as well... Right in front of me... hiding behind the numbers. Always has been"
Maximillian Cohen : Rethinking my assumptions:
One: mathematics is the language of nature.
Two: everything around us can be represented and understood through numbers.
Three: if you graph the numbers of any system, patterns emerge. Consequently, there are patterns everywhere of nature.
Evidence: epidemic cycles, growth and decline of the caribou population, the sunspot cycle, the waxing and waning of the Nile River
What happens then to the stock market? The universe of numbers that represent the global economy.
Millions of hands at work, billions of minds.
A vast network, screaming strongly.
An organism, a natural organism.
My hypothesis: in the stock market there is also a patron. Right in front of me ... Hiding behind numbers. Always has been.
The movie Pi, the order of chaos (Pi: Faith in Chaos, Darren Aranofsky, 1998) tells the story of a mathematical genius, Maximillian Cohen (Sean gullet), paranoid and antisocial. In addition, Max suffers from constant migraines caused, according to him, for daring to look at the sun directly when he was six.
The central argument of the film revolves around the hypothesis Max proposes to the beginning of the tape. In the first instance, argues that mathematics is the language of nature. His second hypothesis is that our surroundings can be understood and represented as numbers and thus, in his third hypothesis indicates that these numbers will become patterns that enable the analysis and understanding the behavior of different natural phenomena around us.
From these assumptions Max states the following: if the stock market and its behavior can be assumed as a network of interactions between living organisms that are part of nature, it would be logical to think that somehow this behavior can be represented numerically, and beyond that, could find a pattern to explain and predict their behavior. In this context, the film revolves around Max's obsession to find the pattern, knowing that to do this, change the development of the stock market and hence the global economy.
The film raises interesting issues regarding the role of mathematics in everyday life and its function as a means of understanding phenomena and processes of nature. Moreover, the film blends elements of 'thriller', suspense and even some religious connotations. For this 'post', analysis of the movie will focus on the study of chaos theory. Chaos theory proposes
Chaos theory analyzes the behavior of dynamic systems ( those with a change or development of the state in a time) and unpredictable behavior these might take. In other words try to find a pattern phenomena or processes that at first glance do not have a clear structure of behavior. It is for this reason that one of its principles states that within the Order and Chaos exists within the Order there is Chaos.
A classic case is the weather. The accuracy of weather forecasts is relative, and the ability to determine their behavior is still very low. However, there have been some progress and has improved the predictability of climate, although in a very short term. For example, until now not possible to determine what exactly will weather in New York on December 10, 2015. This is also the case with earthquakes and the inability to predict with sufficient time to prepare the population.
is in this context that chaos theory works. Trying to find patterns or order which apparently are chaotic systems. Precisely, that's what also tries to find Max. An order in the way as the stock market fluctuates. An order that allows its operation to interpret and predict their behavior.
Today, although there have developed sophisticated mathematical models that help to analyze the stock market and its chaotic behavior is far away even the possibility of finding a pattern that determines their behavior. If so, the gains for those who find the order of this chaos would be huge.
Perhaps the ability to predict the behavior of the stock due to living organisms interact with each other human beings, and as Weinberger notes, "social behavior tends to avoid predictability."
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