Related papers: The theory of quantitative trading
In this paper we give a self contained introduction to the conceptional and mathematical foundations of quantum information theory. In the first part we introduce the basic notions like entanglement, channels, teleportation etc. and their…
We attempt to explain stock market dynamics in terms of the interaction among three variables: market price, investor opinion and information flow. We propose a framework for such interaction and apply it to build a model of stock market…
In this paper, we briefly discuss a mathematical concept that can be used in economics.
From the climate system to the effect of the internet on society, chaotic systems appear to have a significant role in our future. Here a method of statistical learning for a class of chaotic systems is described along with underlying…
In this expository and resources chapter we review selected aspects of the mathematics of dynamical systems, stability, and chaos, within a historical framework that draws together two threads of its early development: celestial mechanics…
In traditional quantitative trading practice, navigating the complicated and dynamic financial market presents a persistent challenge. Fully capturing various market variables, including long-term information, as well as essential signals…
Trading a financial instrument pushes its price and those of other assets, a phenomenon known as cross-impact. To be of use, cross-impact models must fit data and be well-behaved so they can be applied in applications such as optimal…
Economists use quantitative trade and spatial models to make counterfactual predictions. Because such predictions often inform policy decisions, it is important to communicate the uncertainty surrounding them. Three key challenges arise in…
In this chapter the complex systems are discussed in the context of economic and business policy and decision making. It will be showed and motivated that social systems are typically chaotic, non-linear and/or non-equilibrium and therefore…
This book intends to give the main definitions and theorems in mathematics which could be useful for workers in theoretical physics. It gives an extensive and precise coverage of the subjects which are addressed, in a consistent and…
This article aims to explain essential elements of perturbation theory and their conceptual underpinnings. It is not meant as a summary of popular perturbation methods, though some illustrative examples are given to underline the main…
Formal definitions of quantities, quantity spaces, dimensions and dimension groups are introduced. Based on these concepts, a theoretical framework and a practical algorithm for dimensional analysis are developed, and examples of…
The objective of the note is to remind readers on how self-financing works in Quantitative Finance. The authors have observed continuing uncertainty on this issue which may be because it lies exactly at the intersection of stochastic…
In this report, we talked about a new quantitative strategy for choosing the optimal(s) stock(s) to trade. The basic notions are generally very known by the financial community. The key here is to understand 1) the standard score applied to…
This book is devoted to the problem of sequential probability forecasting, that is, predicting the probabilities of the next outcome of a growing sequence of observations given the past. This problem is considered in a very general setting…
The review presents the basics of quantum decision theory, with the emphasis on temporary processes in decision making. The aim is to explain the principal points of the theory. The difference of an operationally testable rational choice…
We continue the analysis of quantum-like description of markets and economics. The approach has roots in the recently developed quantum game theory and quantum computing. The present paper is devoted to quantum English auction which are a…
Based on ideas of quantum theory of open systems we propose the consistent approach to the formulation of logic of plausible propositions. To this end we associate with every plausible proposition diagonal matrix of its likelihood and…
This book introduces the mathematical foundations and techniques that lead to the development and analysis of many of the algorithms that are used in machine learning. It starts with an introductory chapter that describes notation used…
The successes of Artificial Intelligence in recent years in areas such as image analysis, natural language understanding and strategy games have sparked interest from the world of finance. Specifically, there are high expectations, and…