Case study on modeling the silver and nasdaq financial time series with simulated annealing

Abstract

This paper reports a case study on modeling the SPDR Silver Trust (SLV) and Nasdaq Composite Index timeseries by using a financial agent based system using simulated annealing. We show here how adding financial information to the modeling system can significantly improve the modeling results. The learning system LFABS, previously developed by the author, will be used as a testbed for the empirical evaluation of the proposed methodology on the two case studies.