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In this paper, we propose a method for evaluating autonomous trading strategies that provides realistic expectations, regarding the strategy's long-term performance. This method addresses This method addresses many pitfalls that currently…

Software Engineering · Computer Science 2021-11-22 Murilo Sibrao Bernardini , Paulo Andre Lima de Castro

This study emphasizes how crucial it is to visualize machine learning models, especially for the banking industry, in order to improve interpretability and support predictions in high stakes financial settings. Visual tools enable…

Machine Learning · Computer Science 2025-02-24 Priyam Ganguly , Ramakrishna Garine , Isha Mukherjee

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

Auctions are widely used in exchanges to match buy and sell requests. Once the buyers and sellers place their requests, the exchange determines how these requests are to be matched. The two most popular objectives used while determining the…

Data Structures and Algorithms · Computer Science 2024-03-06 Mohit Garg , Suneel Sarswat

Many cryptocurrency brokers nowadays offer a variety of derivative assets that allow traders to perform hedging or speculation. This paper proposes an effective algorithm based on neural networks to take advantage of these investment…

Machine Learning · Computer Science 2023-10-03 Quoc Minh Nguyen , Dat Thanh Tran , Juho Kanniainen , Alexandros Iosifidis , Moncef Gabbouj

Learning to optimize (L2O) is an emerging approach that leverages machine learning to develop optimization methods, aiming at reducing the laborious iterations of hand engineering. It automates the design of an optimization method based on…

Optimization and Control · Mathematics 2021-07-05 Tianlong Chen , Xiaohan Chen , Wuyang Chen , Howard Heaton , Jialin Liu , Zhangyang Wang , Wotao Yin

Optimal trading strategies for pairs trading have been studied by models that try to find either optimal shares of stocks by assuming no transaction costs or optimal timing of trading fixed numbers of shares of stocks with transaction…

Trading and Market Microstructure · Quantitative Finance 2019-11-26 Haipeng Xing

Quadratic unconstrained binary optimization (QUBO) tasks are very important in chemistry, finance, job scheduling, and so on, which can be represented using graph structures, with the variables as nodes and the interaction between them as…

Quantum Physics · Physics 2024-04-10 Yuhan Huang , Ferris Prima Nugraha , Siyuan Jin , Yichi Zhang , Bei Zeng , Qiming Shao

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

Analysis of algorithms with complete knowledge of its inputs is sometimes not up to our expectations. Many times we are surrounded with such scenarios where inputs are generated without any prior knowledge. Online Algorithms have found…

Computational Engineering, Finance, and Science · Computer Science 2015-06-11 Sandeep Kumar , Deepak Garg

Optimal trading is a recent field of research which was initiated by Almgren, Chriss, Bertsimas and Lo in the late 90's. Its main application is slicing large trading orders, in the interest of minimizing trading costs and potential…

Trading and Market Microstructure · Quantitative Finance 2018-06-05 Charles-Albert Lehalle , Eyal Neuman

Securities markets are quintessential complex adaptive systems in which heterogeneous agents compete in an attempt to maximize returns. Species of trading agents are also subject to evolutionary pressure as entire classes of strategies…

Neural and Evolutionary Computing · Computer Science 2019-12-23 David Rushing Dewhurst , Yi Li , Alexander Bogdan , Jasmine Geng

Many important physical processes have dynamics that are too complex to completely model analytically. Optimisation of such processes often relies on intuition, trial-and-error, or the construction of empirical models. Machine learning…

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

Optimal execution of portfolio transactions is the essential part of algorithmic trading. In this paper we present in simple analytical form the optimal trajectory for risk-averse trader with the assumption of exponential market recovery…

Trading and Market Microstructure · Quantitative Finance 2013-09-27 Igor Skachkov

Portfolio traders strive to identify dynamic portfolio allocation schemes so that their total budgets are efficiently allocated through the investment horizon. This study proposes a novel portfolio trading strategy in which an intelligent…

Portfolio Management · Quantitative Finance 2019-12-02 Hyungjun Park , Min Kyu Sim , Dong Gu Choi

While historically, economists have been primarily occupied with analyzing the behaviour of the markets, electronic trading gave rise to a new class of unprecedented problems associated with market fairness, transparency and manipulation.…

Cryptography and Security · Computer Science 2019-10-02 Vasilios Mavroudis , Hayden Melton

Autonomous trading robots have been studied in artificial intelligence area for quite some time. Many AI techniques have been tested for building autonomous agents able to trade financial assets. These initiatives include traditional neural…

Artificial Intelligence · Computer Science 2022-06-30 Paulo André Lima de Castro

Many tools empower analysts and data scientists to consume analysis results in a visual interface, such as a dashboard. When the underlying data changes, these results need to be updated, but this update can take a long time -- all while…

Databases · Computer Science 2023-02-14 Dixin Tang , Alan Fekete , Indranil Gupta , Aditya G. Parameswaran

We explore the competitive effects of reaction time of automated trading strategies in simulated financial markets containing a single exchange with public limit order book and continuous double auction matching. A large body of research…

Trading and Market Microstructure · Quantitative Finance 2020-12-01 Henry Hanifan , John Cartlidge