Quantum Price Levels—Basic Theory and Numerical Computation Technique

Abstract

This chapter focuses on detailed mathematical and numerical derivations of quantum price levels to solve the quantum finance Schrödinger equation (QFSE) effectively using numerical computational method—the core of quantum finance in financial market modeling. First, it presents the basic concept of quantum price levels (QPLs) and its relationship with quantum finance energy levels (QFELs) in QFSE. Second, it shows how to interpret the quantum price return wave function in terms of probability density function (pdf) using finite difference method (FDM). From that, it studies experiments (time series trading results) of financial products for over 2000 trading days to obtain the observation’s statistical distributions. Third, it explores how to solve QFSE using numerical computational technique and describes the computer algorithm to determine all QFEL and QPL. The chapter ends with the first quantum finance computing workshop for QPL evaluation on worldwide financial products using metatrader query language (MQL) in metatrader (MT) platform.

It is true that in quantum theory we cannot rely on strict causality. But by repeating the experiments many times, we can finally derive from the observation’s statistical distributions, and by repeating such series of experiments, we can arrive at objective statements concerning these distributions.

Werner Heisenberg (1901–1976)