The methodological approach to forecast modeling of financial markets price dynamics in view of the system complexity

Mikhail Kussy

Mikhail Kussy Taurida National V.I.Vernadsky University

Keywords: forecast modeling, financial markets, price dynamics, system complexity

Abstract

Purpose and subject of researchThe aim of this paper is to identify the essential system characteristics of financial market and methodological development of algorithm, which is used for behavior of market price’s forecast modeling.Research methodologyA theoretical framework is proposed investigation of the financial market’s essential characteristics as a complex socio-economic system. Subsequently, described system attributes, which can be measured quantitatively, it is proposed to use for the analysis and prediction of the price’s behavior in the financial market. It is proposed algorithm for researching of financial markets as complex systems that use the system complexity’s attributes.Value resultsThe present study provides a starting-point for further research of complexity’s attributes in the financial markets.ConclusionsThe proposed algorithm not only makes the process of financial market research correctly, but can be used for other socio-economic systems after some adaptation.Key words: forecast modeling, financial markets, price dynamics, system complexity.

Author Biography

Mikhail Kussy, Taurida National V.I.Vernadsky University

candidate of economic sciences, associate professor, department of companies finance and insurance, Taurida National V.I.Vernadsky University(Simferopol, Ukraine)

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