A friend of mine recently asked, how are exchange rates and walking related?
My friends Mehul Sharma, Harshita Gupta, and Samujjwaal Dey helped me build an application that pulls live foreign exchange data and simulates the next 30 days using random walks.
The random walk theory suggests that stock prices and exchange rates fluctuate randomly, and that common predictive approaches in #finance and #banking such as moving averages, ARIMA, and other regressions cannot predict future prices. However, using the variance from historical fluctuations for given exchanges, we can run "random" simulations to gain quantum glimpses of the future.
Here's the live application link: https://williamstaudenmeier.shinyapps.io/Random_Walks_FX/
From an #r #programming perspective, you can use the #quantmod package to pull live FX data and #shiny to visualize the results. Let me know if you've experimented with #fractals or #randomwalks, or what your thoughts are on predicting the future. Thanks!