I Figured Out How to Predict the Stock Market — and Still Lost Money.

3 min read

round purple light wallpaper

I created the holy grail, everything one could wish for — but learned quite an expensive lesson regardless. Background To understand what I did, we must first learn some things about how stock prices move.  Everyone has their own view of how prices move, but a common one — and one that I abide by, is that stock prices can be modeled through something known as Brownian motion. Brownian motion is the observation of random movements from point A to point B. Examples of this are dust floating in a room, or a gas molecule bouncing around randomly.  When applied to stock prices, this…...

This article is free to read

Login to read the full article


OR

By subscribing to our main site, you will also be subscribed to DDIntel - our regular letter showcasing our featured articles and applications.

Quant Galore Quantitative trader writing about markets and strategies for all those interested.