Competing With Wall Street Algorithms

25 Nov 2025 · 0 min

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0:29

The video (by Kosta Ouzas) analyzes financial market cycles using a power-law baseline and examines residual deviations between cycles. In this excerpt the speaker explains subtracting a fitted power law to reveal what remains, noting initial similarity between two cycles and later divergence during a bull market (deviation from the power law).

Look at this lower panel. I'm actually subtracting the power law so you can see what is left over after the power law. You can see here how the current cycle was almost identical to the previous one initially and then they deviated that. You know, when you see flat in this chart means you're following the power law. So it was actually following the power. Low is good, but, you know, during a bull market we are expecting a deviation.