About Brownian Motion
Brownian motion describes the random movement of particles suspended in a fluid. It is a fundamental concept in physics and finance.
The motion follows the equation:
x(t+dt) = x(t) + η · √dt
Where:
- x(t): Position of the particle at time t.
- dt: Small time step.
- η: Random noise term (Gaussian distribution).
This simulation visualizes the random paths of particles in a 2D space.
Connection to Antifragility
- Financial markets exhibit randomness similar to Brownian motion.
- Antifragile systems benefit from volatility and randomness.