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Trading Strategy for Random Walk with Hard Walls

Let’s say the price of an asset behaves as follows: The asset price starts from 0 At any time t, the price is equally likely to go up or down by 1 i.e. Price(t+1) can only be Price(t) + 1 or Price(t) – 1, and both of those are equally likely However, if the price goes to 10, it has to go back to 9 at the next instant. If the price goes to -10, Read more…