Three of six of these charts were created using a random number generator on Excel. Three of these are actual charts of stocks or commodities. Its not easy to determine which is which. I'll tell you how in a little while.
When a non-linear deterministic system is attended by external fluctuations, its trajectories present serious and permanent distortions. Furthermore, the noise is amplified due to the inherent non-linearity and reveals totally new dynamical properties. Statistical tests attempting to separate noise from the deterministic skeleton or inversely
isolate the deterministic part risk failure. Things become worse when the deterministic component is a non-linear feedback system.^ Kyrtsou, C., (2008).
Re-examining the sources of heteroskedasticity: the paradigm of noisy chaotic models, Physica A, 387, pp. 6785-6789.
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