An Investment Model for Adaptive Control

 in a Finance Open System

MA Jinlong^1,2, MA Feite² 

(1. Changsha Workroom of Nonlinear Special Dynamics, Changsha 410013, China,

2. Guangzhou Institute of Geochemistry Chinese Academy of Science, Guangzhou 510640, China)

Abstract: On the theory of complex systems the nonlinear special dynamic factors （solitary wave）following the money market were found by practicing in the stock and futures market ,and the egregious order brought by nonlinear actions was quantificationally opened out in past 5 years. The knowledge discovery of database comes true on the data by effective data mining, that has enabled us to reach information black box visualization in asymmetry，and the seeking approach Keynes’ “beauty contest” were found. One finally becomes the minority winner in games by means of learning evolution, using martingale method and fixed point theory, carrying out the trading of financial market for the nonlinear dynamic programming, building the adaptive control mathematical model, being in conformity to inertia trading strategy, at random approaching the peak and lowest of the price-waves in the stock and futures market, and best optimizing the opportunity of the purchase and sale.

Key words: finance market; nonlinearity; data mining; numerical analysis; adaptive control;  dynamic programming; investment model