Do you see patterns in Random Walks?

Quote from SunTrader:

Simple is a complex word.

Simple can be Elegant and/or Beautiful as well as Inelegant and/or Ugly or even somewhere in between.
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words are the bastardization of thought
 
Quote from nfactorial:

This paper might be of interest:

"On the distribution of stock market data"

http://lit.jinr.ru/Reports/annual-report05/ShortLITReports2004_StockMarket-163.pdf


Quote:
"[...] for most stocks the distribution of the closing prices normalized by traded volumes fits well the log-normal function.

Do you see any practical implication?
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Thanks for the paper. The log-normal distribution is the most accurate representation of the price behavior IMHO. There are, however, a few very simple methods to normalize this data to fit the normal curve. It is much more practical. But even without this conversion the log-normal character of market data opens up tremendous opportunities for the algo trading. Just think of the Arcsine law converted for log-normal distribution!

Cheers,
MAESTRO
 
The arcsin law adapted for leptokurtotic distribution of price changes, in layman terms, courtesy of yours truly: "Run your profits, and cut your losses short". :)

Can anyone, except yours truly, put the law of the meander adapted for leptokurtotic distribution of price changes, in layman terms?.:D
 
Quote from SunTrader:

It is leptokurtic.
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That name was given to it by some homo that wanted to sound impontant several dozen years after I discovered it and named it!. Let's say it's a HOMOnym.:p
 
What random walk, there ain't such a thing as random walk in trading.

Cannot belief this thread is still going on, as my late father used to say: "wanking off in a dark suit may feel nice but I doubt anyone notices"

Have a nice day
 
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