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This is a discussion on Non Linear Trading within the Forex forums, part of the Markets category; anyone use or has looked into this method of trading? ie the buy 1 every x points down with x ...
This is an example of a linear relationship. Nonlinear relationships, in general, are any relationship which is not linear. What is important in considering nonlinear relationships is that a wider range of possible dependencies is allowed. When there is very little information to determine what the relationship is, assuming a linear relationship is simplest and thus, by Occam's razor, is a reasonable starting point.