In the late 1980's a book was written by James Gleick which shocked the scientific world, and was replete with revelations that extended into the capital markets.

    The book was CHAOS, and this new form of mathematics was unique because it maintained that systems which seemed random and chaotic, were not.  It proposed that these systems were non-linear functions which could be predictable.

    At the same time one of my good friends, a brilliant mathematician,  was retooling thermodynamic mathematics, and independently discovered Chaos Math.  He discovered he was able to discern a non-linear equation from simply digesting 20-30 numbers in a system.  His program then created the equation and could predict the next numbers in  the sequence.  When he realized that his program worked, he was frozen in excitement because of its implications.  There are applications to systems that previously were thought unmanageable like cardiac arrhythmia, weather prediction, global warming models, and the stock market.

    I quickly realized that my mathematician friend's program could be applied to the financial markets, and to that end, started working in fusing together his mathematics with my knowledge of capital markets.

    We spent thousands of hours, along with a small passionate research group, in creating a system that would work.  The intense research began in 1991, and we had several failures.  At times we felt like we were trying to hit a moving object, an object that could never be corralled.  We applied the mathematics only to the S & P Futures, which we found to be the most easily predictable system.  Finally, after a series of mazes and false turns, we could see the light at the end of the tunnel by the year 1995.

    All the people in our group could taste victory, and the fact that there were published reports of major groups attempting what we were doing with hundreds of millions of dollars of capital, and huge research teams, and failing, made us proud and intensely motivated to finish.

     By 1996, our system was almost the mathematical equivalent of Michelangelo's sculpture of David.  There were a few more strokes of the hammer and chisel, but the simplistic powerful beauty of the mathematics was apparent.  We had achieved something altogether original, a 21st century paradigm finished in the tail end of the 20th century.

    We want you, the collective you of the internet world to come on our continuing Lewis and Clark scientific journey to see where it leads, and see what mysteries of the capital markets and others will be revealed.

    I believe that this journey will be one of the most rewarding journeys of this and the next century, and I am proud, along with my research group, to be pioneers of cutting-edge science, which may ensure that our grandchildren will have a world to live in.

                                                                  Dan Giedt
                                                                  President, Chaos Enterprises