Predicting financial data

Abstract

Let us try to predict a time series. The goal here is to establish a function based on observed values (time series data). Using x1,x2,x3,⋯x4 we attempt to obtain a function xt=f(xt-1,xt-2,xt-3,xt-4,⋯,xt-m) that can be used to predict current data xt from previously observed data. The reader should note that the arguments of this function do not include a time variable t. This is to avoid deriving a time series prediction function that is dependent on absolute time.