which was assumed to be random. This really exemplifies how a truly predictable, non-random sequence would perform. Conflicts of interest edit There are a number of ways in which proprietary trading can create conflicts of interest between a bank's interests and those of its customers. It is carried out at specialized prop trading firms and hedge funds. All they do is prove that to the human eye market returns, in the absence of any additional information, are indistinguishable from random processes. Software Disclaimer, on another note I am thrilled to report that this Python implementation passes all of the unit tests specified in the nist C documentation and, as a bonus, includes tonnes of comments. 4 ebastien Coron, Jean-S., and David Naccache. In this context we could use the test to identify those patterns which appear "too frequently" and bet on them occurring again. Most random number generators are not truly random which is why they are labelled either pseudo or quasi random number generators.

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As such, the challenge with using a Turing machine to try and find an algorithm which replicates the stock market is that if the market is actually random no replicating algorithm exists. Thus, each time, the price had a fifty-fifty chance of closing higher or lower than the previous day. Assuming the sequence is uniformly distributed this proportion should be close to 1 meaning that the number of 1 bits was approximately equal to the number of 0 bits. 3 Pincus, Steve, and Rudolf. I am lucky to be their first code-monkey / quant.