4 ms·
A normal distribution assumes independent random samples. That clearly doesn't happen in a market where people and algos are reacting to the same news. Moves en
by rdlecler1 11y ago
A normal distribution assumes independent random samples. That clearly doesn't happen in a market where people and algos are reacting to the same news. Moves end up more like step functions in both panicked or excited market and will then overshoot buying and selling.