Re: Article in Omega Research magazine.

["Philippe Lhermie" <philippe.lhermie@xxxxxxxxxxx>]

----- Original Message -----
From: Dave DeLuca <ddeluca@xxxxxxxxxx>
To: Omega List <omega-list@xxxxxxxxxx>
Sent: Wednesday, September 08, 1999 8:52 PM
Subject: Article in Omega Research magazine.


>
> My question is, is there any reason why we should assume a normal
> distribution? This doesn't seem logical.
>
> Dave
>
Hi Dave,

It is well known that maket prices don't follow a normally distributed
movement.
To be normal implies that the last trade is independent from the previous
trade, this is never the case.

Market prices distribution curves have a Kurtosis: the 2 tails of the
distribution curve are greater than in a normal distribution curve.
the occurence of a price outside +/- one standard deviation is greater than
65%.

Regards,
Philippe

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philippe.lhermie@xxxxxxxxxxx

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