Regardless of who you are, either an algo trader hidden in the wilderness of Alaska or an active portfolio manager in a large financial institution in São Paulo, your investments are the subject to sudden and undesired movements in the markets. There is one fear.
This Article is quite interesting, Have you tried my previous examples in Random Walk?
If you havn't then it's too bad, It seems that you think Trading like a drunken monkey, will make you any richer then you already are...
Why not? Try the logic but with inverted functions. And Share the sources.
Branching processes - In the mid 19th century several aristocratic families in Victorian England realized that their family names could become extinct.
Was it just unfounded paranoia, or did something real prompt them to come to this conclusion? They decided to ask around, and Sir Francis Galton (a “polymath, anthropologist, eugenicist, tropical explorer, geographer, inventor, meteorologist, protogeneticist, psychometrician and statistician” and half-cousin of Charles Darwin) posed the following question (1873, Educational Times): How many male children (on average) must each generation of a family have in order for the family name to continue in perpetuity?
The first complete answer came from Reverend Henry William Watson soon after, and the two wrote a joint paper entitled One the probability of extinction of families in 1874. By the end of this lecture, you will be able to give a precise answer to Galton’s question.
Now you will find this one page 56 from our previous lecture... (Intro to Stochastic Processes)
Otherwise you can go and enjoy your trading with Python -> Sources.
