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A deterministic trading strategy can be regarded as a signal processing element that uses external information and past prices as inputs and incorporates them into future prices. This paper uses a market maker based method of price…

统计力学 · 物理学 2008-12-02 J. Doyne Farmer , Shareen Joshi

We investigate scaling and memory effects in return intervals between price volatilities above a certain threshold $q$ for the Japanese stock market using daily and intraday data sets. We find that the distribution of return intervals can…

统计金融 · 定量金融 2009-11-13 Woo-Sung Jung , Fengzhong Wang , Shlomo Havlin , Taisei Kaizoji , Hie-Tae Moon , H. Eugene Stanley

High-frequency financial data of the foreign exchange market (EUR/CHF, EUR/GBP, EUR/JPY, EUR/NOK, EUR/SEK, EUR/USD, NZD/USD, USD/CAD, USD/CHF, USD/JPY, USD/NOK, and USD/SEK) are analyzed by utilizing the Kullback-Leibler divergence between…

数据分析、统计与概率 · 物理学 2009-11-13 Aki-Hiro Sato

The key characteristic of a true free market economy is that exchanges are entirely voluntary. When there is a monopoly in the creation of currency as we have in today's markets, you no longer have a true free market. Features of the…

经济学 · 定量金融 2025-03-25 Norbert Agbeko

This paper examines the impact of US monetary policy tightening on emerging markets, distinguishing between direct and indirect spillover effects using the global vector autoregression with stochastic volatility covering 32 countries. The…

综合经济学 · 经济学 2024-02-13 Povilas Lastauskas , Anh Dinh Minh Nguyen

By studying all the trades and best bids/asks of ultra high frequency snapshots recorded from the order books of a basket of 10 futures assets, we bring qualitative empirical evidence that the impact of a single trade depends on the…

交易与市场微观结构 · 定量金融 2010-10-28 Khalil al Dayri , Emmanuel Bacry , Jean-Francois Muzy

We investigate the financial market dynamics by introducing a heterogeneous agent-based opinion formation model. In this work, we organize the individuals in a financial market by their trading strategy, namely noise traders and…

统计金融 · 定量金融 2022-12-28 Mateus F. B. Granha , André L. M. Vilela , Chao Wang , Kenric P. Nelson , H. Eugene Stanley

We present a simple hybrid dynamical model as a tool to investigate behavioral strategies based on trend following. The multiplicative symbolic dynamics are generated using a lognormal diffusion model for the at-the-money implied volatility…

概率论 · 数学 2008-12-02 Ted Theodosopoulos , Alex Trifunovic

While the use of volatilities is pervasive throughout finance, our ability to determine the instantaneous volatility of stocks is nascent. Here, we present a method for measuring the temporal behavior of stocks, and show that stock prices…

统计金融 · 定量金融 2010-07-30 Achilles D. Speliotopoulos

The multifractal behavior for tick data of prices is investigated in Korean financial market. Using the rescaled range analysis(R/S analysis), we show the multifractal nature of returns for the won-dollar exchange rate and the KOSPI. We…

统计力学 · 物理学 2008-12-02 Kyungsik Kim , Seong-Min Yoon

We consider the dynamics of player's strategies in repeated market games, where the selection of strategies is determined by a learning model. Prior theoretical analysis and experimental data show that after large number of plays the…

偏微分方程分析 · 数学 2015-09-21 Misha Perepelitsa

We propose a simple stochastic model of market behavior. Dividing market participants into two groups: trend-followers and fundamentalists, we derive the general form of a stochastic equation of market dynamics. The model has two…

统计力学 · 物理学 2008-12-02 Guennadi Saiko

This paper analizes the optimal level of transfer pricing manipulation when the expected tax penalty is a function of the tax enforcement and the market price parameter. The arm's length principle implies the existence of a range of…

经济学 · 定量金融 2015-08-18 Alex Augusto Timm Rathke

An expanding literature articulates the view that Taylor rules are helpful in predicting exchange rates. In a changing world however, Taylor rule parameters may be subject to structural instabilities, for example during the Global Financial…

统计金融 · 定量金融 2014-03-05 Joseph Byrne , Dimitris Korobilis , Pinho Ribeiro

Increased day-trading activity and the subsequent jump in intraday volatility and trading volume fluctuations has raised considerable interest in models for financial market microstructure. We investigate the random transitions between two…

概率论 · 数学 2007-05-23 Muffasir Badshah , Robert Boyer , Ted Theodosopoulos

The dynamical behavior of the currency exchange rate after its large-scale catastrophe is discussed through a case study of the rate of Russian rubles to US dollars after its crash in 2014. It is shown that, similarly to the case of the…

统计金融 · 定量金融 2018-04-16 Vasilya Usmanova , Yury V. Lysogorskiy , Sumiyoshi Abe

Directional-change Intrinsic Time analysis has long revealed scaling laws in market microstructure, but the origin of their stability remains elusive. This article presents evidence that Intrinsic Time can be modeled as a memoryless…

统计金融 · 定量金融 2025-11-19 Thomas Houweling

We introduce a stochastic heterogeneous interacting-agent model for the short-time non-equilibrium evolution of excess demand and price in a stylized asset market. We consider a combination of social interaction within peer groups and…

A theory which describes the share price evolution at financial markets as a continuous-time random walk has been generalized in order to take into account the dependence of waiting times t on price returns x. A joint probability density…

统计力学 · 物理学 2015-06-24 Przemyslaw Repetowicz , Peter Richmond

Using Trades and Quotes data from the Paris stock market, we show that the random walk nature of traded prices results from a very delicate interplay between two opposite tendencies: long-range correlated market orders that lead to…

统计力学 · 物理学 2008-12-02 Jean-Philippe Bouchaud , Yuval Gefen , Marc Potters , Matthieu Wyart