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[amibroker] "Random prices" (was Re: Backtest using equity curve)



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hello,

--- In amibroker@xxxxxxxxxxxxxxx, uenal.mutlu@xxxx wrote:
> // generate random series in the range 0 to 100 and plot it
> Graph = Random() * 100;
> Plot(Graph, "Random graph", colorBlue);
> 
> Does any real chart look like such a random chart: NO.
> This proves the basic fact that nothing in the markets
> is or was ever random.
> UM

well, of course it doesn't look like. but it is another kind of randomness. I'm not an expert and can not serve strict and reliable explanation, but as a point for your further investigation do google for "brown noise", "white noise" and similar. as an exemplification of "brown noise" and how this can be a matter of scientific investigations, please start for yourself this "brown noise" generator. 

http://www.ki.net.pl/~pgrodzki/Gaussian.zip

do you see these trends and formations? ;)

cheers,
BM


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