User Tools

Site Tools


basic_tools:random_walk

Differences

This shows you the differences between two versions of the page.

Link to this comparison view

Both sides previous revision Previous revision
Next revision
Previous revision
basic_tools:random_walk [2018/03/28 12:34]
jakobadmin
basic_tools:random_walk [2020/04/02 18:12]
74.98.242.130 [Abstract]
Line 19: Line 19:
    
 <tabbox Abstract> ​ <tabbox Abstract> ​
 +Imagine a man coming out of a bar in cancun, an open bottle of sunscreen dribbling from his back pocket. He walks forward for a few steps, and then there’s a good chance that he will stumble in one direction or another.
 +
 +Now put that guy on a big canvas with an X and Y dimension. ​ The line his sunscreen drippings will make is a random walk.
 +
 +The math behind that chaotic process is pretty useful in all kinds of domains, option trading being one in particular.
 +
 +"How do we model this stock"
 +
 +"​Imagine it's running around like a drunk guy in Cancun"​
 +
 +"​Cool"​
  
 <note tip> <note tip>
Line 27: Line 38:
 <tabbox Why is it interesting?> ​ <tabbox Why is it interesting?> ​
  
-Random walks are essential to understand Brownian motion, to model stock movements in finance and to understand the [[advanced_tools:​path_integral|path integral]] of quantum theories.+Random walks are essential to understand Brownian motion, to model stock movements in finance and to understand the [[theories:​quantum_mechanics:​path_integral|path integral]] of quantum theories.
  
  
basic_tools/random_walk.txt · Last modified: 2020/04/02 18:12 by 74.98.242.130