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We introduce a framework for calibrating machine learning models so that their predictions satisfy explicit, finite-sample statistical guarantees. Our calibration algorithms work with any underlying model and (unknown) data-generating…

Machine Learning · Computer Science 2022-10-03 Anastasios N. Angelopoulos , Stephen Bates , Emmanuel J. Candès , Michael I. Jordan , Lihua Lei

We examine the problem of smoothed online optimization, where a decision maker must sequentially choose points in a normed vector space to minimize the sum of per-round, non-convex hitting costs and the costs of switching decisions between…

Machine Learning · Computer Science 2022-10-28 Daan Rutten , Nico Christianson , Debankur Mukherjee , Adam Wierman

This paper extends a conventional, general framework for online adaptive estimation problems for systems governed by unknown nonlinear ordinary differential equations. The central feature of the theory introduced in this paper represents…

Systems and Control · Computer Science 2017-07-11 Parag Bobade , Suprotim Majumdar , Savio Pereira , Andrew J. Kurdila , John B. Ferris

Accurate probabilistic predictions are essential for optimal decision making. While neural network miscalibration has been studied primarily in classification, we investigate this in the less-explored domain of regression. We conduct the…

Machine Learning · Computer Science 2023-06-08 Victor Dheur , Souhaib Ben Taieb

We study algorithms for online linear optimization in Hilbert spaces, focusing on the case where the player is unconstrained. We develop a novel characterization of a large class of minimax algorithms, recovering, and even improving,…

Machine Learning · Computer Science 2014-05-22 H. Brendan McMahan , Francesco Orabona

A constant rebalanced portfolio is an asset allocation algorithm which keeps the same distribution of wealth among a set of assets along a period of time. Recently, there has been work on on-line portfolio selection algorithms which are…

Portfolio Management · Quantitative Finance 2013-02-01 Yoram Singer

We analyze a new algorithm for probability forecasting of binary observations on the basis of the available data, without making any assumptions about the way the observations are generated. The algorithm is shown to be well calibrated and…

Machine Learning · Computer Science 2007-05-23 Vladimir Vovk

In digital advertising, online platforms allocate ad impressions through real-time auctions, where advertisers typically rely on autobidding agents to optimize bids on their behalf. Unlike traditional auctions for physical goods, the value…

Computer Science and Game Theory · Computer Science 2025-09-03 Zhicheng Du , Wei Tang , Zihe Wang , Shuo Zhang

In this paper, we present a novel trading strategy that integrates reinforcement learning methods with clustering techniques for portfolio management in multi-period trading. Specifically, we leverage the clustering method to categorize…

Portfolio Management · Quantitative Finance 2023-10-03 Zhengyong Jiang , Jeyan Thiayagalingam , Jionglong Su , Jinjun Liang

The study seeks to develop an effective strategy based on the novel framework of statistical arbitrage based on graph clustering algorithms. Amalgamation of quantitative and machine learning methods, including the Kelly criterion, and an…

Portfolio Management · Quantitative Finance 2024-06-18 Adam Korniejczuk , Robert Ślepaczuk

Recently, several universal methods have been proposed for online convex optimization which can handle convex, strongly convex and exponentially concave cost functions simultaneously. However, most of these algorithms have been designed…

Machine Learning · Computer Science 2023-02-14 Arnold Salas

We consider the problem of online linear regression in the stochastic setting. We derive high probability regret bounds for online ridge regression and the forward algorithm. This enables us to compare online regression algorithms more…

Machine Learning · Computer Science 2021-11-03 Reda Ouhamma , Odalric Maillard , Vianney Perchet

We consider a two-way trading problem, where investors buy and sell a stock whose price moves within a certain range. Naturally they want to maximize their profit. Investors can perform up to $k$ trades, where each trade must involve the…

Data Structures and Algorithms · Computer Science 2017-06-19 Stanley P. Y. Fung

In this paper, we propose a machine learning algorithm for time-inconsistent portfolio optimization. The proposed algorithm builds upon neural network based trading schemes, in which the asset allocation at each time point is determined by…

Portfolio Management · Quantitative Finance 2023-09-06 Kristoffer Andersson , Cornelis W. Oosterlee

Assessing uncertainty is an important step towards ensuring the safety and reliability of machine learning systems. Existing uncertainty estimation techniques may fail when their modeling assumptions are not met, e.g. when the data…

Machine Learning · Computer Science 2017-01-24 Volodymyr Kuleshov , Stefano Ermon

We propose a new risk sensitive reinforcement learning approach for the dynamic hedging of options. The approach focuses on the minimization of the tail risk of the final P&L of the seller of an option. Different from most existing…

Risk Management · Quantitative Finance 2024-11-15 Xianhua Peng , Xiang Zhou , Bo Xiao , Yi Wu

We study online optimization in a setting where an online learner seeks to optimize a per-round hitting cost, which may be non-convex, while incurring a movement cost when changing actions between rounds. We ask: \textit{under what general…

Machine Learning · Computer Science 2020-01-27 Yiheng Lin , Gautam Goel , Adam Wierman

Reinforcement learning considers the problem of finding policies that maximize an expected cumulative reward in a Markov decision process with unknown transition probabilities. In this paper we consider the problem of finding optimal…

Machine Learning · Computer Science 2020-10-19 Santiago Paternain , Juan Andres Bazerque , Alejandro Ribeiro

Calibration means that forecasts and average realized frequencies are close. We develop the concept of forecast hedging, which consists of choosing the forecasts so as to guarantee that the expected track record can only improve. This…

Theoretical Economics · Economics 2022-10-14 Dean P. Foster , Sergiu Hart

Motivated by the challenges related to the calibration of financial models, we consider the problem of numerically solving a singular McKean-Vlasov equation $$ d X_t= \sigma(t,X_t) X_t \frac{\sqrt v_t}{\sqrt {E[v_t|X_t]}}dW_t, $$ where $W$…

Computational Finance · Quantitative Finance 2024-01-15 Christian Bayer , Denis Belomestny , Oleg Butkovsky , John Schoenmakers