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Alpha factor mining is a fundamental task in quantitative trading, aimed at discovering interpretable signals that can predict asset returns beyond systematic market risk. While traditional methods rely on manual formula design or heuristic…

Computational Engineering, Finance, and Science · Computer Science 2025-10-22 Lang Cao

Mining of formulaic alpha factors refers to the process of discovering and developing specific factors or indicators (referred to as alpha factors) for quantitative trading in stock market. To efficiently discover alpha factors in vast…

Computational Engineering, Finance, and Science · Computer Science 2024-07-09 Hong-Gi Shin , Sukhyun Jeong , Eui-Yeon Kim , Sungho Hong , Young-Jin Cho , Yong-Hoon Choi

Alphas are stock prediction models capturing trading signals in a stock market. A set of effective alphas can generate weakly correlated high returns to diversify the risk. Existing alphas can be categorized into two classes: Formulaic…

Artificial Intelligence · Computer Science 2021-04-02 Can Cui , Wei Wang , Meihui Zhang , Gang Chen , Zhaojing Luo , Beng Chin Ooi

The complexity of financial data, characterized by its variability and low signal-to-noise ratio, necessitates advanced methods in quantitative investment that prioritize both performance and interpretability.Transitioning from early manual…

Computational Finance · Quantitative Finance 2024-12-13 Hao Shi , Weili Song , Xinting Zhang , Jiahe Shi , Cuicui Luo , Xiang Ao , Hamid Arian , Luis Seco

Alpha factor mining aims to discover investment signals from the historical financial market data, which can be used to predict asset returns and gain excess profits. Powerful deep learning methods for alpha factor mining lack…

Computational Finance · Quantitative Finance 2025-06-18 Junjie Zhao , Chengxi Zhang , Min Qin , Peng Yang

In the field of quantitative trading, it is common practice to transform raw historical stock data into indicative signals for the market trend. Such signals are called alpha factors. Alphas in formula forms are more interpretable and thus…

Statistical Finance · Quantitative Finance 2023-06-23 Shuo Yu , Hongyan Xue , Xiang Ao , Feiyang Pan , Jia He , Dandan Tu , Qing He

The use of machine learning for statistical modeling (and thus, generative modeling) has grown in popularity with the proliferation of time series models, text-to-image models, and especially large language models. Fundamentally, the goal…

Statistical Finance · Quantitative Finance 2024-08-06 Achintya Gopal

Traditional genetic programming (GP) often struggles in stock alpha factor discovery due to its vast search space, overwhelming computational burden, and sporadic effective alphas. We find that GP performs better when focusing on promising…

Statistical Finance · Quantitative Finance 2024-12-03 Weizhe Ren , Yichen Qin , Yang Li

Financial markets are noisy and non-stationary, making alpha mining highly sensitive to backtest noise and regime shifts. While recent agentic frameworks improve automation, they often lack controllable multi-round search and reliable reuse…

Statistical Finance · Quantitative Finance 2026-05-19 Jun Han , Shuo Zhang , Wei Li , Yifan Dong , Tu Hu , Yumo Zhu , Xiaomin Yu , Xin Guo , Zhaowei Liu , Kunyi Wang , Jingping Liu , Tianyi Jiang , Ruichuan An , Sen Hu , Zhi Yang , Ronghao Che , Huacan Wang

Alphas are pivotal in providing signals for quantitative trading. The industry highly values the discovery of formulaic alphas for their interpretability and ease of analysis, compared with the expressive yet overfitting-prone black-box…

Computational Finance · Quantitative Finance 2024-06-27 Feng Xu , Yan Yin , Xinyu Zhang , Tianyuan Liu , Shengyi Jiang , Zongzhang Zhang

The formulaic alphas are mathematical formulas that transform raw stock data into indicated signals. In the industry, a collection of formulaic alphas is combined to enhance modeling accuracy. Existing alpha mining only employs the neural…

Computational Finance · Quantitative Finance 2024-03-01 Tao Ren , Ruihan Zhou , Jinyang Jiang , Jiafeng Liang , Qinghao Wang , Yijie Peng

Discovering effective predictive signals, or "alphas," from financial data with high dimensionality and extremely low signal-to-noise ratio remains a difficult open problem. Despite progress in deep learning, genetic programming, and, more…

Computation and Language · Computer Science 2026-04-21 Fengyuan Liu , Yi Huang , Sichun Luo , Yuqi Wang , Yazheng Yang , Xinye Li , Zefa Hu , Junlan Feng , Qi Liu

Alpha factor mining is pivotal in quantitative investment for identifying predictive signals from complex financial data. While traditional formulaic alpha mining relies on human expertise, contemporary automated methods, such as those…

Artificial Intelligence · Computer Science 2025-11-13 Yu Shi , Yitong Duan , Jian Li

Modern quantitative trading increasingly relies on systematic models to extract predictive signals from large-scale financial data, where alpha factor discovery plays a central role in transforming market observations into tradable signals.…

Computational Engineering, Finance, and Science · Computer Science 2026-05-18 Lingzhe Zhang , Tong Jia , Yunpeng Zhai , Zixuan Xie , Chiming Duan , Minghua He , Philip S. Yu , Ying Li

Extracting signals through alpha factor mining is a fundamental challenge in quantitative finance. Existing automated methods primarily follow two paradigms: Decoupled Factor Generation, which treats factor discovery as isolated events, and…

Artificial Intelligence · Computer Science 2026-02-13 Taian Guo , Haiyang Shen , Junyu Luo , Binqi Chen , Hongjun Ding , Jinsheng Huang , Luchen Liu , Yun Ma , Ming Zhang

Formula alpha mining, which generates predictive signals from financial data, is critical for quantitative investment. Although various algorithmic approaches-such as genetic programming, reinforcement learning, and large language…

Artificial Intelligence · Computer Science 2025-08-20 Hongjun Ding , Binqi Chen , Jinsheng Huang , Taian Guo , Zhengyang Mao , Guoyi Shao , Lutong Zou , Luchen Liu , Ming Zhang

Classical machine learning models, such as linear models and tree-based models, are widely used in industry. These models are sensitive to data distribution, thus feature preprocessing, which transforms features from one distribution to…

Machine Learning · Computer Science 2026-04-16 Danrui Qi , Jinglin Peng , Yongjun He , Jiannan Wang

Recent developments in deep learning techniques have motivated intensive research in machine learning-aided stock trading strategies. However, since the financial market has a highly non-stationary nature hindering the application of…

Portfolio Management · Quantitative Finance 2020-12-15 Kentaro Imajo , Kentaro Minami , Katsuya Ito , Kei Nakagawa

Automating quantitative trading strategy development in dynamic markets is challenging, especially with increasing demand for personalized investment solutions. Existing methods often fail to explore the vast strategy space while preserving…

Artificial Intelligence · Computer Science 2025-10-22 Junhyeog Yun , Hyoun Jun Lee , Insu Jeon

In the trading process, financial signals often imply the time to buy and sell assets to generate excess returns compared to a benchmark (e.g., an index). Alpha is the portion of an asset's return that is not explained by exposure to this…

Computational Engineering, Finance, and Science · Computer Science 2024-10-25 Yining Wang , Jinman Zhao , Yuri Lawryshyn
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