Modeling volatility in the new era of High Frequency Trading has become very important phenomenon. Autoregressive Conditional Heteroscedasticity (ARCH) (Engle, 1982) and generalized autoregressive conditional heteroskedasticity(GARCH) ,proposed by Bollerslev (1986) models have been very helpful for financial time series over period of time to model volatility. We have proposed one mathematical approach for financial time series which uses multiple moving averages method and effective Kurtosis .Moreover risk management process to improve the algorithm and to get optimum output has also been discussed.
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