can anyone help me to explain how the following model works?
In this formula $P(t)$ is a price at time $t$ and $F(t)$ is the residual noise term.
The $\omega(i;T_i)$ and $P_{o}(i;T_i)$ are uniquely determined from the past $T_{i}$ data points by condition that minimizes the root-mean square of $F(t)$.
Why $(\omega_{1}(i;T_i)-1)$?
Thanks in advance.