Using the Stock Market and Foreign Exchange as a Random Number Generator

Stock markets and foreign exchange are said to move in random walk, that we cannot predict it going up or down.

This got me thinking of a great idea. To use the stock market (for example, the Nikkei 225 Index) as a random number generator.

The foreign exchange (FX) can also be used as a random number generator.

The process is rather simple. for a given point in time, assuming that there is movement every x seconds, (or milliseconds) we grab the number of decimal places. We must make sure it is a small number because stock markets or FX moves in very small increments, and therefore, the big numbers will not make a random number generator.

If for some reason, somebody proves that it cannot be made to a random number generator, it also proves that stock market is predictable, meaning we can indeed make profit from the stock market or the foreign exchange, contrary to common belief that the stock market and foreign exchange behaves in random walk.

Tsubasa Kato 2013/7/19 16:43