Alpha Curves are generated by Market Memory proprietary algorithms automatically. They represent the fundamental market behaviors under the selected market condition. The traders can assume that the actual market movement under the same market condition will follow one of the Alpha Curves or the combination of multiple Alpha Curves.
The motivation to develop Alpha Curves is to provide graphical representations of the archetypal patterns the market creates. They represent a special blend of uniqueness and repeatability uncovered by Market Memory’s pattern recognition algorithms. These are the paths the market has traced out over and over as it created the statistical outcomes observed in a stats table. Results are path dependent, and Alpha Curves illuminate that path. Market Memory expects these curves to offer more insight into market behavior than any statistic ever could. Market Memory predicts that these curves can unleash the power of traders’ brain and allow them to interpret market patterns because the algorithms have cleaned the majority of the bias out of the data.