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Wave function method to forecast foreign currencies exchange rates at ultra high frequency electronic trading in foreign currencies exchange markets

Dimitri Ledenyov and Viktor Ledenyov

MPRA Paper from University Library of Munich, Germany

Abstract: The accurate forecast of the foreign currencies exchange rates at the ultra high frequency electronic trading in the foreign currencies exchange markets is a main topic of our research: 1) the present state of the foreign currencies exchange markets in Asia, Europe and North America; 2) the research review on the classic forecast techniques of the foreign currencies exchange rates dynamics in the foreign currencies exchange markets in the classic finances theory; 3) the description on the quantum forecast techniques of the foreign currencies exchange rates dynamics in the foreign currencies exchange markets with the application of both the wave function and the time dependent / time independent wave equation in the quantum finances theory; 4) the derivation of the time dependent / time independent wave equation in the quantum finances theory; 5) the creation of the quantum system state prediction algorithm, based on both the wave function and the time dependent / time independent wave equation in the quantum finances theory; 6) the discussion on the developed software program with the embedded quantum system state prediction algorithm, using both the wave function and the time dependent / time independent wave equation in the quantum finances theory; 7) the final words on the perspectives of the quantum forecast techniques of the foreign currencies exchange rates dynamics in the foreign currencies exchange markets, applying both the wave function and the time dependent / time independent wave equation in the quantum finances theory.

Keywords: ultra high frequency electronic trading; foreign currencies exchange rates; foreign currencies exchange markets; vehicle currency; interest rate; retail aggregator; liquidity aggregator; interdealer trade orders flow direction; stop-loss order; bid - ask spreads; price discovery process; capital inflow; capital outflow; carry trade strategy; financial liquidity; FX market micro structure; FX rate dynamics; absorption/diffusion/transmission of information; information theory; asymmetric information; autoregressive conditional heteroskedasticity; Wiener filtering theory; Stratanovich-Kalman-Bucy filtering algorithm / filter; particle filter; quantum system state prediction algorithm with wave function; time dependent / time independent wave equation; nonlinearities; artificial intelligence; Ledenyov strategy search algorithm; econophysics; econometrics; global foreign exchange market; global capital market; wealth management. (search for similar items in EconPapers)
JEL-codes: C01 C02 C32 C53 C58 G0 G11 G15 G17 G24 (search for similar items in EconPapers)
Date: 2015-10-27
New Economics Papers: this item is included in nep-for and nep-mst
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