This edition includes developments in chaos theory, with new chapters that tie in with innovations such as fuzzy logic, neural nets and artificial intelligence as they relate to finance.

A groundbreaking look at complexity theory and its implications in the world of finance
Complexity theory tells us that processes with a large number of seemingly independent agents-such as free markets-can spontaneously organize themselves into a coherent system. In this fascinating book, Edgar Peters brings together scientific theory, the artistic process, and economics to show how the randomness and uncertainty of complexity theory can be applied to financial markets. Written in an engaging and accessible style, this is a thoughtful, conceptual look at the way free markets are, by...

A groundbreaking look at complexity theory and its implications in the world of finance
Complexity theory tells us that processes with a large number of seemingly independent agents-such as free markets-can spontaneously organize themselves into a coherent system. In this fascinating book, Edgar Peters brings together scientific theory, the artistic process, and economics to show how the randomness and uncertainty of complexity theory can be applied to financial markets. Written in an engaging and accessible style, this is a thoughtful, conceptual look at the way free markets are, by...

This sequel to the author's Chaos and Order in the Capital Markets presents the practical applications of the science of chaos to financial markets. Peters shows how to profit from the similarity in the markets in this applications-oriented book. Behaviour and price movements are explained using fractals, rescaled range analysis and non-linear dynamical models.