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The unpredictability and volatility of the stock market render it challenging to make a substantial profit using any generalised scheme. Many previous studies tried different techniques to build a machine learning model, which can make a…

Trading and Market Microstructure · Quantitative Finance 2023-08-14 A. K. M. Amanat Ullah , Fahim Imtiaz , Miftah Uddin Md Ihsan , Md. Golam Rabiul Alam , Mahbub Majumdar

Recently, several authors have advocated the use of rule learning algorithms to model multi-label data, as rules are interpretable and can be comprehended, analyzed, or qualitatively evaluated by domain experts. Many rule learning…

Machine Learning · Computer Science 2020-12-09 Michael Rapp , Eneldo Loza Mencía , Johannes Fürnkranz

A valuation for a player in a game in extensive form is an assignment of numeric values to the players moves. The valuation reflects the desirability moves. We assume a myopic player, who chooses a move with the highest valuation.…

Machine Learning · Computer Science 2007-05-23 Philippe Jehiel , Dov Samet

Employing probabilistic techniques we compute best possible upper and lower bounds on the price of an option on one or two assets with continuous piecewise linear payoff function based on prices of simple call options of possibly distinct…

Probability · Mathematics 2008-12-02 Dimitris Bertsimas , Natasha Bushueva

We model stochastic choice as environment-dependent switching among a small library of deterministic decision rules. A Random Rule Model generates menu-level choice probabilities via named, interpretable rules weighted by observable menu…

General Economics · Economics 2026-04-15 Avner Seror

When people pursue rewards in stochastic environments, they often match their choice frequencies to the observed target frequencies, even when this policy is demonstrably sub-optimal. We used a ``hide and seek'' task to evaluate this…

Neurons and Cognition · Quantitative Biology 2025-11-11 Peter DiBerardino , Britt Anderson

Nowadays, with the availability of massive amount of trade data collected, the dynamics of the financial markets pose both a challenge and an opportunity for high frequency traders. In order to take advantage of the rapid, subtle movement…

Computational Engineering, Finance, and Science · Computer Science 2018-07-06 Dat Thanh Tran , Martin Magris , Juho Kanniainen , Moncef Gabbouj , Alexandros Iosifidis

With the improvement of computer performance and the development of GPU-accelerated technology, trading with machine learning algorithms has attracted the attention of many researchers and practitioners. In this research, we propose a novel…

Portfolio Management · Quantitative Finance 2021-03-23 Huanming Zhang , Zhengyong Jiang , Jionglong Su

Using results from neurobiology on perceptual decision making and value-based decision making, the problem of decision making between lotteries is reformulated in an abstract space where uncertain prospects are mapped to corresponding…

Neurons and Cognition · Quantitative Biology 2020-01-03 Adnan Rebei

Positive feedback trading, which buys when prices rise and sells when prices fall, has long been criticized for being destabilizing as it moves prices away from the fundamentals. Motivated by the relationship between positive feedback…

Mathematical Finance · Quantitative Finance 2021-11-25 Aihua Li

Representations of sets are challenging to learn because operations on sets should be permutation-invariant. To this end, we propose a Permutation-Optimisation module that learns how to permute a set end-to-end. The permuted set can be…

Machine Learning · Computer Science 2019-01-16 Yan Zhang , Jonathon Hare , Adam Prügel-Bennett

Stock recommendation is vital to investment companies and investors. However, no single stock selection strategy will always win while analysts may not have enough time to check all S&P 500 stocks (the Standard & Poor's 500). In this paper,…

Trading and Market Microstructure · Quantitative Finance 2025-11-18 Hongyang Yang , Xiao-Yang Liu , Qingwei Wu

While bibliometrics are widely used for research evaluation purposes, a common theoretical framework for conceptually understanding, empirically studying, and effectively teaching its usage is lacking. In this paper, we outline such a…

Digital Libraries · Computer Science 2019-06-26 Lutz Bornmann , Julian N. Marewski

Decision rules offer a rich and tractable framework for solving certain classes of multistage adaptive optimization problems. Recent literature has shown the promise of using linear and nonlinear decision rules in which wait-and-see…

Optimization and Control · Mathematics 2022-11-24 Said Rahal , Dimitri J. Papageorgiou , Zukui Li

A deterministic trading strategy by a representative investor on a single market asset, which generates complex and realistic returns with its first four moments similar to the empirical values of European stock indices, is used to simulate…

General Finance · Quantitative Finance 2016-09-08 Philip Maymin

In a fixed time horizon, appropriately executing a large amount of a particular asset -- meaning a considerable portion of the volume traded within this frame -- is challenging. Especially for illiquid or even highly liquid but also highly…

Mathematical Finance · Quantitative Finance 2023-08-15 David Evangelista , Yuri Thamsten

Small additive ensembles of symbolic rules offer interpretable prediction models. Traditionally, these ensembles use rule conditions based on conjunctions of simple threshold propositions $x \geq t$ on a single input variable $x$ and…

Machine Learning · Computer Science 2025-06-27 Shahrzad Behzadimanesh , Pierre Le Bodic , Geoffrey I. Webb , Mario Boley

A key challenge in satisficing planning is to use multiple heuristics within one heuristic search. An aggregation of multiple heuristic estimates, for example by taking the maximum, has the disadvantage that bad estimates of a single…

Artificial Intelligence · Computer Science 2021-04-13 David Speck , André Biedenkapp , Frank Hutter , Robert Mattmüller , Marius Lindauer

Recent years have witnessed success of sequential modeling, generative recommender, and large language model for recommendation. Though the scaling law has been validated for sequential models, it showed inefficiency in computational…

Theoretical models applied to option pricing should take into account the empirical characteristics of the underlying financial time series. In this paper, we show how to price basket options when assets follow a shifted log-normal process…

Pricing of Securities · Quantitative Finance 2013-12-17 Tommaso Paletta , Arturo Leccadito , Radu Tunaru