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Generative and agentic artificial intelligence is entering financial markets faster than existing governance can adapt. Current model-risk frameworks assume static, well-specified algorithms and one-time validations; large language models…

Computers and Society · Computer Science 2025-12-16 Eren Kurshan , Tucker Balch , David Byrd

Large language models (LLMs) are increasingly deployed in agentic frameworks, in which prompts trigger complex tool-based analysis in pursuit of a goal. While these frameworks have shown promise across multiple domains including in finance,…

Statistical Finance · Quantitative Finance 2025-07-14 Dimitrios Emmanoulopoulos , Ollie Olby , Justin Lyon , Namid R. Stillman

Cryptocurrency markets present unique prediction challenges due to their extreme volatility, 24/7 operation, and hypersensitivity to news events, with existing approaches suffering from key information extraction and poor sideways market…

Computational Finance · Quantitative Finance 2025-10-10 Kairan Hong , Jinling Gan , Qiushi Tian , Yanglinxuan Guo , Rui Guo , Runnan Li

We describe the design and implementation of an autonomous adaptive software agent that addresses the practical problem of observing undersampled, periodic, time-varying phenomena using a network of HTN-compliant robotic telescopes. The…

Astrophysics · Physics 2009-11-13 Eric S. Saunders , Tim Naylor , Alasdair Allan

A key challenge in multi-robot and multi-agent systems is generating solutions that are robust to other self-interested or even adversarial parties who actively try to prevent the agents from achieving their goals. The practicality of…

Artificial Intelligence · Computer Science 2017-10-19 Trong Nghia Hoang , Yuchen Xiao , Kavinayan Sivakumar , Christopher Amato , Jonathan How

Simulated environments are increasingly used by trading firms and investment banks to evaluate trading strategies before approaching real markets. Backtesting, a widely used approach, consists of simulating experimental strategies while…

Artificial Intelligence · Computer Science 2021-10-27 Andrea Coletta , Matteo Prata , Michele Conti , Emanuele Mercanti , Novella Bartolini , Aymeric Moulin , Svitlana Vyetrenko , Tucker Balch

Reinforcement Learning has emerged as a promising framework for developing adaptive and data-driven strategies, enabling market makers to optimize decision-making policies based on interactions with the limit order book environment. This…

Trading and Market Microstructure · Quantitative Finance 2026-02-17 Rafael Zimmer , Oswaldo Luiz do Valle Costa

Despite abundant negotiation strategies in literature, the complexity of automated negotiation forbids a single strategy from being dominant against all others in different negotiation scenarios. To overcome this, one approach is to use…

Artificial Intelligence · Computer Science 2022-02-18 Ayan Sengupta , Yasser Mohammad , Shinji Nakadai

As LLM agents advance, they are increasingly mediating economic decisions, ranging from product discovery to transactions, on behalf of users. Such applications promise benefits but also raise many questions about agent accountability and…

The paper explores the application of a continuous action space soft actor-critic (SAC) reinforcement learning model to the area of automated market-making. The reinforcement learning agent receives a simulated flow of client trades, thus…

Pricing of Securities · Quantitative Finance 2020-08-28 Alexey Bakshaev

We advance market-making strategies by integrating Adversarial Reinforcement Learning (ARL), Hawkes Processes, and variable volatility levels while also expanding the action space available to market makers (MMs). To enhance the…

Trading and Market Microstructure · Quantitative Finance 2025-08-26 Ziyi Wang , Carmine Ventre , Maria Polukarov

Market making is a fundamental trading problem in which an agent provides liquidity by continually offering to buy and sell a security. The problem is challenging due to inventory risk, the risk of accumulating an unfavourable position and…

Artificial Intelligence · Computer Science 2018-04-13 Thomas Spooner , John Fearnley , Rahul Savani , Andreas Koukorinis

Although Large Language Model (LLM)-based agents are increasingly used in financial trading, it remains unclear whether they can reason and adapt in live markets, as most studies test models instead of agents, cover limited periods and…

The reproduction of realistic dynamics in financial markets is of great significance, as it enhances our understanding of market evolution beyond other physical processes, and facilitates the development and backtesting of investment…

Multiagent Systems · Computer Science 2025-10-14 Tianlang He , Fengming Zhu , Keyan Lu , Chang Xu , Yang Liu , Weiqing Liu , Fangzhen Lin , S. -H. Gary Chan , Jiang Bian

Traditional interactive environments limit agents' intelligence growth with fixed tasks. Recently, single-agent environments address this by generating new tasks based on agent actions, enhancing task diversity. We consider the…

Multiagent Systems · Computer Science 2025-01-30 Yizhe Huang , Xingbo Wang , Hao Liu , Fanqi Kong , Aoyang Qin , Min Tang , Song-Chun Zhu , Mingjie Bi , Siyuan Qi , Xue Feng

Recent advancements in large language models (LLMs) and agentic systems have shown exceptional decision-making capabilities, revealing significant potential for autonomic finance. Current financial trading agents predominantly simulate…

Multiagent Systems · Computer Science 2026-02-10 Zifan Song , Kaitao Song , Guosheng Hu , Ding Qi , Junyao Gao , Xiaohua Wang , Dongsheng Li , Cairong Zhao

Social simulation provides a compelling testbed for studying social intelligence, where agents interact through multi-turn dialogues under evolving contexts and strategically adapting opponents. Such environments are inherently…

Artificial Intelligence · Computer Science 2026-05-20 Xiang Li , Liping Yi , Mingze Kong , Min Zhang , Zhongxiang Dai , QingHua Hu

Large language models show promise for financial decision-making, yet deploying them as autonomous trading agents raises fundamental challenges: how to adapt instructions when rewards arrive late and obscured by market noise, how to…

Trading and Market Microstructure · Quantitative Finance 2026-05-21 Charidimos Papadakis , Angeliki Dimitriou , Giorgos Filandrianos , Maria Lymperaiou , Konstantinos Thomas , Giorgos Stamou

We present a new model for prediction markets, in which we use risk measures to model agents and introduce a market maker to describe the trading process. This specific choice on modelling tools brings us mathematical convenience. The…

Computer Science and Game Theory · Computer Science 2014-03-05 Jinli Hu , Amos Storkey

Automated Market Makers (AMMs) are essential in Decentralized Finance (DeFi) as they match liquidity supply with demand. They function through liquidity providers (LPs) who deposit assets into liquidity pools. However, the asset trading…

Systems and Control · Electrical Eng. & Systems 2025-04-01 Viraj Nadkarni , Sanjeev Kulkarni , Pramod Viswanath