Wave Function Method to Forecast Foreign Currencies Exchange Rates at Ultra High Frequency Electronic Trading in Foreign Currencies Exchange Markets

156 Pages Posted: 28 Oct 2015

See all articles by Dimitri Ledenyov

Dimitri Ledenyov

James Cook University, Townsville, Queensland, Australia

Viktor Ledenyov

V. N. Karazin Kharkov National University

Date Written: October 27, 2015

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

JEL Classification: G1, G10, G12, G14, G15, G20, C40, C42, C82, D0, D82, E42, F3, F4, F31

Suggested Citation

Ledenyov, Dimitri and Ledenyov, Viktor, Wave Function Method to Forecast Foreign Currencies Exchange Rates at Ultra High Frequency Electronic Trading in Foreign Currencies Exchange Markets (October 27, 2015). Available at SSRN: https://ssrn.com/abstract=2681183 or http://dx.doi.org/10.2139/ssrn.2681183

Dimitri Ledenyov (Contact Author)

James Cook University, Townsville, Queensland, Australia ( email )

Townsville, Queensland 4811
Australia
+61412711540 (Phone)

HOME PAGE: http://www.jcu.edu.au

Viktor Ledenyov

V. N. Karazin Kharkov National University ( email )

Svobody square 4
Kharkov, Kharkov 61002
Ukraine

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