# Erdos–Renyi Theory

Adaptive trading strategy using random graph theory to forecast market direction and manage trades.

Canonical: https://prismaticalgos.com/compendium/algo/6810-erdosrenyi-theory
Record ID: 6810
Catalog rank: 237 (reading order, not performance)
Snapshot: 2026-10-31 15:46 UTC
Family: Mean Reversion & Counter-Trend (B)
Source: https://www.mql5.com/en/articles/23987
Evidence label (unverified): source_code

## Scope and limitations

These are machine-extracted research records, not verified trading systems. Catalog rank measures specification detail and claimed evidence, not profitability. The catalog extraction pipeline did not independently backtest these records. Its separate selected testing ledger does not validate the wider corpus. Rules, labels and parameters can be incomplete or wrong; consult the original source and its reuse terms.

No endorsement, ownership claim or source-code reuse permission is implied.

## Extraction warnings

Opacity warnings: UNDEFINED ENTRY TERM: the entry conditions are prose naming a concept with no numeric definition, so two readers would implement them differently. Advisory only -- this does not affect the score.

## Recorded profile

- symbols: any
- timeframes: M1
- sessions: any
- market_regime: volatile

## Indicators

- EMA: {"period": 21}; applied to: close
- EMA: {"period": 89}; applied to: close
- ATR: {"period": 14}; applied to: Not specified
- RSI: {"period": 14}; applied to: Not specified

## Recorded long-entry rules

- k-step random walk expectation >= 0.15
- 1 - normalized entropy of the k-step row >= 0.03
- current node bias must align with forecast

## Recorded short-entry rules

- k-step random walk expectation <= -0.15
- 1 - normalized entropy of the k-step row >= 0.03
- current node bias must oppose the forecast

## Recorded exit rules

- probability of advancing to next milestone < 0.35

## Recorded filters

- max spread 60 points
- trading hours 07:00-20:00 GMT
- randomness test z-score >= 0.00

## Risk controls

- Stop loss: ATR * 2.0
- Take profit: 3.0 R multiples
- Position sizing: risk per trade (% of balance) = 1.0