Optimization of Financial Instrument Parcels in Stochastic Wavelet Model

TL;DR

This paper introduces a stochastic wavelet model for financial markets, proposing a new algorithm for predicting price movements and validating it through experiments.

Contribution

It presents a novel non-local Ito-equation extension for wavelet images of random processes and an algorithm for modeling and predicting market oscillations.

Findings

Successful experimental validation of the proposed prediction model

Development of a new evolutionary equation algorithm

Enhanced understanding of oscillatory market movements

Abstract

To define oscillatory movements of securities market, we put in the non-local extension of Ito- equation for wavelet-images of random processes. It is proposed an algorithm of creation of evolutionary equation and a model of prediction of the most probable price movement path. It is carried out experimental validation of findings.