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In this paper we propose an investing strategy based on neural network models combined with ideas from game-theoretic probability of Shafer and Vovk. Our proposed strategy uses parameter values of a neural network with the best performance…

Computational Finance · Quantitative Finance 2011-06-10 Ryo Adachi , Akimichi Takemura

Statistical arbitrage exploits temporal price differences between similar assets. We develop a unifying conceptual framework for statistical arbitrage and a novel data driven solution. First, we construct arbitrage portfolios of similar…

Machine Learning · Computer Science 2022-10-11 Jorge Guijarro-Ordonez , Markus Pelger , Greg Zanotti

We consider the on-line predictive version of the standard problem of linear regression; the goal is to predict each consecutive response given the corresponding explanatory variables and all the previous observations. We are mainly…

Statistics Theory · Mathematics 2011-11-22 Vladimir Vovk , Ilia Nouretdinov , Alex Gammerman

We consider the on-line predictive version of the standard problem of linear regression; the goal is to predict each consecutive response given the corresponding explanatory variables and all the previous observations. The standard…

Statistics Theory · Mathematics 2009-06-18 Vladimir Vovk , Ilia Nouretdinov , Alex Gammerman

We study the discrete bin covering problem where a multiset of items from a fixed set $S \subseteq (0,1]$ must be split into disjoint subsets while maximizing the number of subsets whose contents sum to at least $1$. We study the online…

Data Structures and Algorithms · Computer Science 2024-01-29 Magnus Berg , Shahin Kamali

We study the problems of sequential nonparametric two-sample and independence testing. Sequential tests process data online and allow using observed data to decide whether to stop and reject the null hypothesis or to collect more data,…

Machine Learning · Statistics 2023-07-21 Aleksandr Podkopaev , Aaditya Ramdas

We introduce a new formulation of asset trading games in continuous time in the framework of the game-theoretic probability established by Shafer and Vovk (Probability and Finance: It's Only a Game! (2001) Wiley). In our formulation, the…

Trading and Market Microstructure · Quantitative Finance 2010-01-13 Kei Takeuchi , Masayuki Kumon , Akimichi Takemura

We consider the problem of dynamic buying and selling of shares from a collection of $N$ stocks with random price fluctuations. To limit investment risk, we place an upper bound on the total number of shares kept at any time. Assuming that…

Portfolio Management · Quantitative Finance 2009-09-23 Michael J. Neely

The classical 'buy or rent' ski-rental problem was recently considered in the setting where multiple experts (such as Machine Learning algorithms) advice on the length of the ski season. Here, robust algorithms were developed with improved…

Machine Learning · Computer Science 2021-04-22 Anant Shah , Arun Rajkumar

Algorithmic trading, due to its inherent nature, is a difficult problem to tackle; there are too many variables involved in the real world which make it almost impossible to have reliable algorithms for automated stock trading. The lack of…

Artificial Intelligence · Computer Science 2020-01-28 Abhishek Nan , Anandh Perumal , Osmar R. Zaiane

Sequential prediction problems such as imitation learning, where future observations depend on previous predictions (actions), violate the common i.i.d. assumptions made in statistical learning. This leads to poor performance in theory and…

Machine Learning · Computer Science 2015-03-17 Stephane Ross , Geoffrey J. Gordon , J. Andrew Bagnell

This paper studies the problem of recursively estimating the weighted adjacency matrix of a network out of a temporal sequence of binary-valued observations. The observation sequence is generated from nonlinear networked dynamics in which…

Systems and Control · Electrical Eng. & Systems 2019-12-06 Yu Xing , Xingkang He , Haitao Fang , Karl Henrik Johansson

We consider the problem of estimating piecewise regular functions in an online setting, i.e., the data arrive sequentially and at any round our task is to predict the value of the true function at the next revealed point using the available…

Statistics Theory · Mathematics 2022-04-01 Sabyasachi Chatterjee , Subhajit Goswami

This thesis presents some geometric insights into three different types of two player prediction games -- namely general learning task, prediction with expert advice, and online convex optimization. These games differ in the nature of the…

Machine Learning · Computer Science 2018-05-23 Parameswaran Kamalaruban

Traditional statistical estimation, or statistical inference in general, is static, in the sense that the estimate of the quantity of interest does not change the future evolution of the quantity. In some sequential estimation problems…

Machine Learning · Computer Science 2021-12-01 Aolin Xu

We consider a learning system based on the conventional multiplicative weight (MW) rule that combines experts' advice to predict a sequence of true outcomes. It is assumed that one of the experts is malicious and aims to impose the maximum…

Machine Learning · Computer Science 2020-09-21 S. Rasoul Etesami , Negar Kiyavash , Vincent Leon , H. Vincent Poor

We present a universal algorithm for online trading in Stock Market which performs asymptotically at least as good as any stationary trading strategy that computes the investment at each step using a fixed function of the side information…

Machine Learning · Computer Science 2014-11-05 Vladimir V'yugin , Vladimir Trunov

Aiming to overcome some of the limitations of worst-case analysis, the recently proposed framework of "algorithms with predictions" allows algorithms to be augmented with a (possibly erroneous) machine-learned prediction that they can use…

Computer Science and Game Theory · Computer Science 2024-03-28 Eric Balkanski , Vasilis Gkatzelis , Xizhi Tan , Cherlin Zhu

Despite the efficient market hypothesis, many studies suggest the existence of inefficiencies in the stock market leading to the development of techniques to gain above-market returns. Systematic trading has undergone significant advances…

Statistical Finance · Quantitative Finance 2024-04-09 Sungwoo Kang , Jong-Kook Kim

A novel algorithm for actively trading stocks is presented. While traditional expert advice and "universal" algorithms (as well as standard technical trading heuristics) attempt to predict winners or trends, our approach relies on…

Artificial Intelligence · Computer Science 2011-07-04 A. Borodin , R. El-Yaniv , V. Gogan