Black hole binaries are variable in timescales of range from months to milli‐seconds. The origin of this variability is still not clear, it could be due to the variation of external parameters, like mass accretion rate, instabilities in the inner regions of the accretion flow etc. Important constraints on these possibilities can be obtained from the study of the non‐linear behavior of fluctuations. We present a modified non‐linear time series analysis technique which optimizes the use of the available data and computes the correlation dimension in a non‐subjective manner. We apply this technique to the X‐ray light‐curve of the black hole system, GRS 1915+105, to show conclusively that at least for four of its twelve temporal classes, the underlying mechanism is a low order chaotic one. © 2004 American Institute of Physics