Random Fractals and the Stock Market

Brownian Motion Cartoons - Iteration

To produce a fractal graph, simply iterate this process.
On the left we see the result of replacing each straight line segment in the generator with an appropriately scaled copy of the generator.
The right shows the seventh iteration of this process.
While this cartoon has the Brownian motion scaling
|dY| = (dt)1/2
built in, it is completely determinisitc and the graph is far too regular to be a convincing surrogate of Brownian motion.
We deal with this issue in the next section.

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