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Multiple Kernel Learning (MKL) is used to replicate the signal combination process that trading rules embody when they aggregate multiple sources of financial information when predicting an asset's price movements. A set of financially…

Statistical Finance · Quantitative Finance 2010-11-30 Tristan Fletcher , Zakria Hussain , John Shawe-Taylor

Flexible algorithm of multicurrency trade on Forex market has been built on the grounds of non-linear stochastic wavelets (NSW) model. Probability of the loss-free trade has been evaluated. Results of the algorithm's real-time testing and…

Portfolio Management · Quantitative Finance 2011-11-28 A. M. Avdeenko

We show that time-dependent fluctuations $\{\Delta x\}$ in foreign exchange rates are accurately described by a random walk in a complex plane that is demarcated into the gain (+) and loss (-) sectors. $\{\Delta x\}$ is the outcome of $N$…

Computational Physics · Physics 2008-12-10 Johnrob Bantang , May Lim , Patricia Arielle Castro , Christopher Monterola , Caesar Saloma

We propose a Genetic Programming architecture for the generation of foreign exchange trading strategies. The system's principal features are the evolution of free-form strategies which do not rely on any prior models and the utilization of…

Neural and Evolutionary Computing · Computer Science 2014-11-11 Simone Cirillo , Stefan Lloyd , Peter Nordin

We introduce a tractable multi-currency model with stochastic volatility and correlated stochastic interest rates that takes into account the smile in the FX market and the evolution of yield curves. The pricing of vanilla options on FX…

Pricing of Securities · Quantitative Finance 2013-03-13 Alessandro Gnoatto , Martino Grasselli

We investigate triangular arbitrage within the spot foreign exchange market using high-frequency executable prices. We show that triangular arbitrage opportunities do exist, but that most have short durations and small magnitudes. We find…

Statistical Finance · Quantitative Finance 2011-09-06 Daniel J. Fenn , Sam D. Howison , Mark McDonald , Stacy Williams , Neil F. Johnson

High-frequency trading is prevalent, where automated decisions must be made quickly to take advantage of price imbalances and patterns in price action that forecast near-future movements. While many algorithms have been explored and tested,…

Computational Finance · Quantitative Finance 2023-11-07 Koti S. Jaddu , Paul A. Bilokon

Macroeconomic indexes are of high importance for banks: many risk-control decisions utilize these indexes. A typical workflow of these indexes evaluation is costly and protracted, with a lag between the actual date and available index being…

Statistical Finance · Quantitative Finance 2021-12-30 Maria Begicheva , Alexey Zaytsev

Gold and currency markets form a unique pair with specific interactions and dynamics. We focus on the efficiency ranking of gold markets with respect to the currency of purchase. By utilizing the Efficiency Index (EI) based on fractal…

Statistical Finance · Quantitative Finance 2018-10-30 Ladislav Kristoufek , Miloslav Vosvrda

In a financial market, for agents with long investment horizons or at times of severe market stress, it is often changes in the asset price that act as the trigger for transactions or shifts in investment position. This suggests the use of…

Trading and Market Microstructure · Quantitative Finance 2015-05-13 H. Lamba

The Efficient Market Hypothesis (EMH) is widely accepted to hold true under certain assumptions. One of its implications is that the prediction of stock prices at least in the short run cannot outperform the random walk model. Yet, recently…

Social and Information Networks · Computer Science 2023-03-24 Panagiotis Papaioannnou , Lucia Russo , George Papaioannou , Constantinos Siettos

Most finance studies are discussed on the basis of several hypotheses, for example, investors rationally optimize their investment strategies. However, the hypotheses themselves are sometimes criticized. Market impacts, where trades of…

Computational Finance · Quantitative Finance 2022-02-03 Takanobu Mizuta , Isao Yagi , Kosei Takashima

This research paper explores the performance of Machine Learning (ML) algorithms and techniques that can be used for financial asset price forecasting. The prediction and forecasting of asset prices and returns remains one of the most…

Statistical Finance · Quantitative Finance 2020-04-06 Philip Ndikum

High-frequency trading (HFT) represents a pivotal and intensely competitive domain within the financial markets. The velocity and accuracy of data processing exert a direct influence on profitability, underscoring the significance of this…

Machine Learning · Computer Science 2024-12-03 Yuxin Fan , Zhuohuan Hu , Lei Fu , Yu Cheng , Liyang Wang , Yuxiang Wang

Algorithmic trading in modern financial markets is widely acknowledged to exhibit strategic, game-theoretic behaviors whose complexity can be difficult to model. A recent series of papers (Chriss, 2024b,c,a, 2025) has made progress in the…

Computer Science and Game Theory · Computer Science 2025-06-10 Michael Kearns , Mirah Shi

Electricity price forecasting (EPF) is a branch of forecasting on the interface of electrical engineering, statistics, computer science, and finance, which focuses on predicting prices in wholesale electricity markets for a whole spectrum…

Statistical Finance · Quantitative Finance 2022-04-26 Arkadiusz Jędrzejewski , Jesus Lago , Grzegorz Marcjasz , Rafał Weron

Over the past few years, the futures market has been successfully developing in the North-West region. Futures markets are one of the most effective and liquid-visible trading mechanisms. A large number of buyers are forced to compete with…

Mathematical Finance · Quantitative Finance 2018-08-16 Oleg Malafeyev , Shulga Andrey

We have discovered 12 independent new empirical scaling laws in foreign exchange data-series that hold for close to three orders of magnitude and across 13 currency exchange rates. Our statistical analysis crucially depends on an…

Statistical Finance · Quantitative Finance 2011-04-01 J. B. Glattfelder , A. Dupuis , R. B. Olsen

Dealers make money by providing liquidity to clients but face flow uncertainty and thus price risk. They can efficiently skew their prices and wait for clients to mitigate risk (internalization), or trade with other dealers in the open…

Trading and Market Microstructure · Quantitative Finance 2023-06-16 Alexander Barzykin , Philippe Bergault , Olivier Guéant

In a natural market environment, the price prediction model needs to be updated in real time according to the data obtained by the system to ensure the accuracy of the prediction. In order to improve the user experience of the system, the…

Computational Finance · Quantitative Finance 2023-07-14 Zhu Bangyuan