Investigation of chaos behavior and integral sliding mode control on financial risk model

This paper reports the finding of a new financial chaotic system. A new control law for completely synchronizing the new financial chaotic system with itself has been established using adaptive integral sliding mode control. We also find that the new financial chaotic system has fascinating traits including symmetry, equilibrium points, multistability, Lyapunov exponents and bifurcation diagrams. We illustrate all the main results of this research work using MATLAB phase plots. The Lyapunov characteristic exponents and analysis using bifurcation diagrams have resulted in a new financial chaos system showing chaos phenomena in the intervals of parameters 0 < alpha < 15, and parameters 0 < b < 0.25. The results of this study can be used to predict if there is chaos in financial risk. Chaotic systems have many applications in engineering like cryptosystems and secure communication systems.

Automated summary

This paper reports the discovery of a new financial chaotic system and proposes a control law for synchronizing it. The new financial chaotic system exhibits interesting traits such as symmetry, equilibrium points, multistability, Lyapunov exponents, and bifurcation diagrams. MATLAB phase plots are used to illustrate the main results of this research. Analysis using Lyapunov characteristic exponents and bifurcation diagrams reveals chaos phenomena in the new financial chaos system within specific parameter intervals. The findings can be applied to predict chaos in financial risk, and chaotic systems have various engineering applications such as cryptosystems and secure communication systems.