1) What is local minima (types, condition)?

shows two types of local minima: strong local minima and weak local

minima. A strong local minimizer, also known as a strict local minimizer, is a point

that uniquely minimizes f within a neighborhood.

1.6 Conditions for Local Minima

Many numerical optimization methods seek local minima. Local minima are

locally optimal, but we do not generally know whether a local minimum is a global

minimum.

Conditions for Local Minima

• Univariate

• A design point is guaranteed to be at a strong local

minimum if the local derivative is zero and the second

derivative is positive:

1. f ′(x∗) = 0

2. f ′′(x∗) > 0

• A zero derivative ensures that shifting the point by small

values does not significantly affect the function value. A

positive second derivative ensures that the zero first

derivative occurs at the bottom of a bowl (If f ′(x) = 0 and f

′′(x) < 0,x is a local maximum.)

• A point can also be at a local minimum if it has a zero

derivative and the second derivative is merely nonnegative:

1. f ′(x∗) = 0, the first-order necessary condition (FONC)( A

point that satisfies the first order necessary condition is some

times called a stationary point.)

2.f ′′(x∗) ≥ 0, the second-order necessary condition (SONC)

\\\\\\\\\\Multivariate

• The following conditions are necessary for x to be at a local

minimum of f :

• 1. ∇f (x) = 0, the first-order necessary condition (FONC)

2) ∇²f(x)is positive semidefinite (for a review of this definition, see appendix C.6),

the second-order necessary condition (SONC)

define condition of local minima where the variate is univariate and multivariate??

UNIVARIATE

A design point is guaranteed to be at a strong local minimum if the local derivative

is zero and the second derivative is positive:

1. f′(x∗) = 0

2. f′′(x∗) > 0

A zero derivative ensures that shifting the point by small values does not

significantly affect the function value. A positive second derivative ensures that

the zero first derivative occurs at the bottom of a bowl.

If f′(x) = 0 andf′′(x) < 0, then

x is a local maximum. A point can also be at a local minimum if it has a zero derivative and the
second

derivative is merely nonnegative:

1. f′(x∗) = 0, the first-order necessary condition (FONC)

2. f′′(x∗) ≥ 0,0, the second-order necessary condition(SONC)

A point that satisfies the first-order necessary condition is some times called a stationary point.
3) what is bracket??

Bracketing

• bracketing methods for univariate functions, or functions

involving a single variable. Bracketing is the process of

identifying an interval in which a local minimum lies and

then successively shrinking the interval.

4) how we find out the inital bracket??

Finding an Initial Bracket

When optimizing a function, we often start by first bracketing an interval con-

taining a local minimum. We then successively reduce the size of the bracketed

interval to converge on the local minimum. A simple procedure (algorithm 3.1)

can be used to find an initial bracket. Starting at a given point, we take a step

5) FIBONACCI SEARCH
6) fibonacci series find out the inital bracket??

7) drawback of fibonacci series algo?

Disadvantages:
Difficulty of determining the starting point. A trend is never perfectly flat. Even at the moment of
exiting the flat, it is sometimes difficult to determine the starting point.

False signals. They happen in this tool and there are quite many of them. And these signals are not
so much false as inaccurate. The price can turn around without reaching the level or after breaking
it and turn around in the middle of the zone.

Cannot be used in Expert Advisors. It is impossible to write an automatic grid building algorithm
into the EA code. Therefore, the tool cannot be used in algorithmic strategies.

8)Quadratic fit search??

Quadratic Fit Search

• Quadratic fit search leverages our ability to analytically solve for

the minimum of a quadratic function. Many local minima look

quadratic when we zoom in close enough. Quadratic fit search

iteratively fits a quadratic function to three bracketing points,

solves for the minimum, chooses a new set of bracketing points,

and repeats

TAKE GRAPH FROM HERE