4 ms·
I know it is quite common practice, but I find using Monte Carlo methods to predict stock prices to be quite ironic and funny.
by lpapez 6y ago
I know it is quite common practice, but I find using Monte Carlo methods to predict stock prices to be quite ironic and funny.
- totalZero 6y agoIs it common? The problem with so many nondeterministic models is that they bake their assumptions into the results, but gap moves in stock valuation are almost always the result of mistaken assumptions.
- Xylakant 6y agoI think that your parent is referring to the Casino de Monte-Carlo or the Vegas resort, both gambling places not unlike the stock market investments for some folks. https://en.m.wikipedia.org/wiki/Monte_Carlo_Casino https://en.m.wikipedia.org/wiki/Monte_Carlo_Casino
- getlawgdon 6y agoNo competent system developer uses mc to "predict stock prices." None. Monte Carlo is a process for estimating variation in randomized simulations of a system's parameters. It is just one statistical tool for examining simulated trade distributions. On unsampled data it is useful for assessing distributions of performance characteristics. I don't know of one person using mc to try to predict prices however.