📈 Financial Market — Agent-Based Model

200 heterogeneous agents — fundamentalists, trend followers and noise traders — interact in an order book. Watch bubbles and crashes emerge spontaneously from simple behavioural rules.

Price chart — price (white), fundamental value (dotted), moving average (yellow)

Order book depth — bids (green) / asks (red) around current price

Market Parameters

Fundamental value V 100 Fundamentalists % 45% Market impact λ 0.06 Noise σ 0.008 Trend sensitivity 0.02

Market Status

● STABLE

Price100.00

Fundamental V100

P / V ratio1.000

Volatility (σ₂₀)—

Bid-ask spread—

Tick0

Agent Population

Fundamentalists—

Trend followers—

Noise traders—

Price update rule:
P_t+1 = P_t · exp(λ·D̃ + σ·ε)
D̃ = excess demand/N
ε ~ N(0,1)

How the Simulation Works

200 agents each submit a buy or sell order each tick based on their type. Fundamentalists compare price to the fundamental value V: they buy when P < V(1−δ) and sell when P > V(1+δ), acting as a stabilising force. Trend followers look at the 10-tick price momentum: they buy in uptrends and sell in downtrends, amplifying movements and creating bubbles. Noise traders send random orders, injecting stochastic fluctuations. The price update is log-linear in excess demand, so the model can produce fat-tailed return distributions similar to real markets. Increase trend followers (and reduce fundamentalists) to trigger bubble-crash cycles.