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No. This method assumes normally distributed potential wives. If a stock was normally distributed (i.e. has volatility) around a stable average, then yes, you c
by mseebach 12y ago
No. This method assumes normally distributed potential wives. If a stock was normally distributed (i.e. has volatility) around a stable average, then yes, you could do that - but so can thousands of automated trading algorithms.
- taejo 12y agoNo, it doesn't assume that at all. It just assumes that they are i.i.d. (so all permutations of ranks are equally likely). Still probably not a good model of stock prices (which presumably are correlated more with the previous day than ten days ago)