>>13825097Quants, unironically, use the most retarded, and I mean Retarded, language.
All they're saying in that quote on random walks and drifts is: "We fit a model with the assumption that the price it is today will be the mean price tomorrow, in addition there is a nonzero time component moving the mean, but our day to day variability is constant"
It's so autistic and they hide it behind so much language when all they're doing is linear regression. Literally, they fit a line between today's prices and tomorrows prices for the last year, saw that it had approximately a slope of 1, fit a line through today's prices and the time, saw that it had a nonzero slope, then fit a model combining both terms.
