Financial Market Prediction System: Methods and Systems for Enhanced Financial Forecasting and Market Movement Prediction Using Recognition Science

A system for enhanced financial forecasting and market movement prediction, the system comprising:

• one or more processors;
• and
• one or more memories storing instructions that, when executed by the one or more processors, cause the system to:
• receive market data associated with a plurality of financial instruments;
• determine from the market data one or more dependency values associated with relationships among the plurality of financial instruments;
• determine from the market data one or more pairwise coupling quantities associated with the plurality of financial instruments;
• apply a bounded recognition-based transform to the one or more pairwise coupling quantities to generate one or more transformed coupling values;
• generate a recognition-based financial network data structure representing structural relationships among the plurality of financial instruments using the one or more dependency values and the one or more transformed coupling values;
• determine from at least one target market variable a first derivative quantity and a second derivative quantity associated with the at least one target market variable;
• apply the bounded recognition-based transform to a volatility-related modifier input and a liquidity-related modifier input associated with the at least one target market variable to generate a transformed first-derivative modifier and a transformed second-derivative modifier;
• generate a predictive output associated with the at least one target market variable using the first derivative quantity, the second derivative quantity, the transformed first-derivative modifier, and the transformed second-derivative modifier;
• and
• output at least one machine-generated market forecast or market movement prediction based on the recognition-based financial network data structure and the predictive output.

A non-transitory computer-readable medium storing instructions that, when executed by one or more processors, cause the one or more processors to perform operations comprising:

• receiving market data associated with a plurality of financial instruments;
• determining from the market data one or more dependency values associated with relationships among the plurality of financial instruments;
• determining from the market data one or more pairwise coupling quantities associated with the plurality of financial instruments;
• applying a bounded recognition-based transform to the one or more pairwise coupling quantities to generate one or more transformed coupling values;
• generating a recognition-based financial network data structure representing structural relationships among the plurality of financial instruments using the one or more dependency values and the one or more transformed coupling values;
• determining from at least one target market variable a first derivative quantity and a second derivative quantity associated with the at least one target market variable;
• applying the bounded recognition-based transform to a volatility-related modifier input and a liquidity-related modifier input associated with the at least one target market variable to generate a transformed first-derivative modifier and a transformed second-derivative modifier;
• generating a predictive output associated with the at least one target market variable using the first derivative quantity, the second derivative quantity, the transformed first-derivative modifier, and the transformed second-derivative modifier;
• and
• outputting at least one machine-generated market forecast or market movement prediction based on the recognition-based financial network data structure and the predictive output.