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basic_tools:random_walk [2018/05/03 13:03] jakobadmin ↷ Links adapted because of a move operation |
basic_tools:random_walk [2020/04/02 18:12] (current) 74.98.242.130 [Abstract] |
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<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. | ||
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+ | 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. | ||
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+ | The math behind that chaotic process is pretty useful in all kinds of domains, option trading being one in particular. | ||
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+ | "How do we model this stock" | ||
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+ | "Imagine it's running around like a drunk guy in Cancun" | ||
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+ | "Cool" | ||
<note tip> | <note tip> |