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Financial market forecasting remains a formidable challenge despite the surge in computational capabilities and machine learning advancements. While numerous studies have underscored the precision of computer-generated market predictions,…

Computational Finance · Quantitative Finance 2023-11-16 Reza Yarbakhsh , Mahdieh Soleymani Baghshah , Hamidreza Karimaghaie

Modeling investor behavior is crucial to identifying behavioral coaching opportunities for financial advisors. With the help of natural language processing (NLP) we analyze an unstructured (textual) dataset of financial advisors' summary…

Statistical Finance · Quantitative Finance 2021-07-13 Cynthia Pagliaro , Dhagash Mehta , Han-Tai Shiao , Shaofei Wang , Luwei Xiong

We apply recent advances in deep generative modeling to the task of imitation learning from biological agents. Specifically, we apply variations of the variational recurrent neural network model to a multi-agent setting where we learn…

Machine Learning · Computer Science 2020-07-02 Michael Teng , Tuan Anh Le , Adam Scibior , Frank Wood

We introduce a neural network approach for assessing the risk of a portfolio of assets and liabilities over a given time period. This requires a conditional valuation of the portfolio given the state of the world at a later time, a problem…

Risk Management · Quantitative Finance 2021-05-27 Patrick Cheridito , John Ery , Mario V. Wüthrich

Infants are experts at playing, with an amazing ability to generate novel structured behaviors in unstructured environments that lack clear extrinsic reward signals. We seek to mathematically formalize these abilities using a neural network…

Machine Learning · Computer Science 2018-11-01 Nick Haber , Damian Mrowca , Li Fei-Fei , Daniel L. K. Yamins

In recent years, a wide range of investment models have been created using artificial intelligence. Automatic trading by artificial intelligence can expand the range of trading methods, such as by conferring the ability to operate 24 hours…

Trading and Market Microstructure · Quantitative Finance 2021-12-17 Koya Ishikawa , Kazuhide Nakata

We consider artificial neurons which will update their weight coefficients with an internal rule based on backpropagation, rather than using it as an external training procedure. To achieve this we include the backpropagation error estimate…

Neural and Evolutionary Computing · Computer Science 2018-08-07 M. N. Nazarov

In this paper, our objective is to develop a multi-agent financial system that incorporates simulated trading, a technique extensively utilized by financial professionals. While current LLM-based agent models demonstrate competitive…

Artificial Intelligence · Computer Science 2025-10-07 Xiangyu Li , Yawen Zeng , Xiaofen Xing , Jin Xu , Xiangmin Xu

As artificial agents become increasingly capable, what internal structure is *necessary* for an agent to act competently under uncertainty? Classical results show that optimal control can be *implemented* using belief states or world…

Machine Learning · Computer Science 2026-04-03 Aran Nayebi

The inability of artificial neural networks to assess the uncertainty of their predictions is an impediment to their widespread use. We distinguish two types of learnable uncertainty: model uncertainty due to a lack of training data and…

Machine Learning · Computer Science 2022-06-14 Hans Weytjens , Jochen De Weerdt

Financial trading has been a challenging task, as it requires the integration of vast amounts of data from various modalities. Traditional deep learning and reinforcement learning methods require large training data and often involve…

Trading and Market Microstructure · Quantitative Finance 2024-11-15 Sorouralsadat Fatemi , Yuheng Hu

Utilizing a generative regime switching framework, we perform Monte-Carlo simulations of asset returns for Value at Risk threshold estimation. Using equity markets and long term bonds as test assets in the global, US, Euro area and UK…

Risk Management · Quantitative Finance 2020-05-07 Alexander Arimond , Damian Borth , Andreas Hoepner , Michael Klawunn , Stefan Weisheit

We propose using deep reinforcement learning to solve dynamic stochastic general equilibrium models. Agents are represented by deep artificial neural networks and learn to solve their dynamic optimisation problem by interacting with the…

Econometrics · Economics 2023-01-06 Mingli Chen , Andreas Joseph , Michael Kumhof , Xinlei Pan , Xuan Zhou

Designing a financial market that works well is very important for developing and maintaining an advanced economy, but is not easy because changing detailed rules, even ones that seem trivial, sometimes causes unexpected large impacts and…

Trading and Market Microstructure · Quantitative Finance 2021-01-08 Takanobu Mizuta

Behavioral Finance has become a challenge to the scientific community. Based on the assumption that behavioral aspects of investors may explain some features of the Stock Market, we propose an agent based model to study quantitatively this…

General Finance · Quantitative Finance 2017-11-23 F. M. Stefan , A. P. F. Atman

Financial trading is a crucial component of the markets, informed by a multimodal information landscape encompassing news, prices, and Kline charts, and encompasses diverse tasks such as quantitative trading and high-frequency trading with…

Trading and Market Microstructure · Quantitative Finance 2024-07-01 Wentao Zhang , Lingxuan Zhao , Haochong Xia , Shuo Sun , Jiaze Sun , Molei Qin , Xinyi Li , Yuqing Zhao , Yilei Zhao , Xinyu Cai , Longtao Zheng , Xinrun Wang , Bo An

The paper presents an advanced version of an adaptive market-making agent capable of performing experiential learning, exploiting a "try and fail" approach relying on a swarm of subordinate agents executed in a virtual environment to…

Computational Engineering, Finance, and Science · Computer Science 2023-03-07 Anton Kolonin , Alexey Glushchenko , Arseniy Fokin , Marcello Mari , Mario Casiraghi , Mukul Vishwas

Recent advances in computing power and the potential to make more realistic assumptions due to increased flexibility have led to the increased prevalence of simulation models in economics. While models of this class, and particularly…

General Economics · Economics 2019-06-12 Donovan Platt

Multi-agent robotic systems are increasingly operating in real-world environments in close proximity to humans, yet are largely controlled by policy models with inscrutable deep neural network representations. We introduce a method for…

Machine Learning · Computer Science 2023-02-24 Renos Zabounidis , Joseph Campbell , Simon Stepputtis , Dana Hughes , Katia Sycara

Financial markets are difficult to predict due to its complex systems dynamics. Although there have been some recent studies that use machine learning techniques for financial markets prediction, they do not offer satisfactory performance…

Statistical Finance · Quantitative Finance 2022-01-31 Jia Wang , Tong Sun , Benyuan Liu , Yu Cao , Degang Wang