2022, Vol. 3, Issue 1, Part A
Cellular automata based financial market
Author(s): Vishakha Agarwal
Abstract: Cellular automata are discrete, abstract computational systems that have proven very useful as general models of complexity and as more specific representations of non-linear dynamics. They can be used directly to create visual or acoustic multimedia content and possibly make parallel computers. However, much of its potential remains un-explored as of now, including modelling financial markets. This includes trading stocks, currency, and other financial instruments. We choose financial aspect to explore because financial market is the perfect example of unpredictability. Even if we spend hours looking at statistics and base our game plan on it, the way financial market moves can never be perfectly mapped out. Even though we have made impressive progress in Machine learning and AI, even they fail here because they only work where the past, present, and future remain consistent. In a few words, we can say that financial market is a chaos, it all depends on how well a particular stock does at a particular time frame. Even this fluctuates constantly. Cellular automata help bring sense to this chaos, by giving deeper insights on the patterns and forces that drive financial market. It can give us simulations that can help us study different aspects of financial market without it being based on existing data to free it from the constraints of past and its unpredictability.
Pages: 44-49 | Views: 994 | Downloads: 713
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How to cite this article:
Vishakha Agarwal. Cellular automata based financial market. Int J Res Circuits Devices Syst 2022;3(1):44-49.