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The stock market prediction has always been crucial for stakeholders, traders and investors. We developed an ensemble Long Short Term Memory (LSTM) model that includes two-time frequencies (annual and daily parameters) in order to predict…

Statistical Finance · Quantitative Finance 2020-01-13 Zineb Lanbouri , Saaid Achchab

The emerging cryptocurrency market has lately received great attention for asset allocation due to its decentralization uniqueness. However, its volatility and brand new trading mode have made it challenging to devising an acceptable…

Machine Learning · Computer Science 2021-10-19 Fengrui Liu , Yang Li , Baitong Li , Jiaxin Li , Huiyang Xie

This paper investigates an optimal integration of deep learning with financial models for robust asset price forecasting. Specifically, we developed a hybrid framework combining a Long Short-Term Memory (LSTM) network with the Merton-L\'evy…

Statistical Finance · Quantitative Finance 2025-12-10 Mohammed Alruqimi , Luca Di Persio

This paper presents a novel approach to optimizing pricing and replenishment strategies in fresh food supermarkets by combining Long Short-Term Memory (LSTM) networks with Particle Swarm Optimization (PSO). The LSTM model, enhanced with an…

Machine Learning · Computer Science 2025-09-17 Xianchen Liu , Tianhui Zhang , Xinyu Zhang , Lingmin Hou , Zhen Guo , Yuanhao Tian , Yang Liu

Financial markets are nonlinear with complexity, where different types of assets are traded between buyers and sellers, each having a view to maximize their Return on Investment (ROI). Forecasting market trends is a challenging task since…

Trading and Market Microstructure · Quantitative Finance 2024-11-22 Sahand Hassanizorgabad

Financial time-series forecasting remains a challenging task due to complex temporal dependencies and market fluctuations. This study explores the potential of hybrid quantum-classical approaches to assist in financial trend prediction by…

Statistical Finance · Quantitative Finance 2025-03-20 Prashant Kumar Choudhary , Nouhaila Innan , Muhammad Shafique , Rajeev Singh

One of the most enticing research areas is the stock market, and projecting stock prices may help investors profit by making the best decisions at the correct time. Deep learning strategies have emerged as a critical technique in the field…

Artificial Intelligence · Computer Science 2024-07-26 Karan Pardeshi , Sukhpal Singh Gill , Ahmed M. Abdelmoniem

This study presents an unsupervised machine learning approach for optimizing Profit and Loss (PnL) in quantitative finance. Our algorithm, akin to an unsupervised variant of linear regression, maximizes the Sharpe Ratio of PnL generated…

Statistical Finance · Quantitative Finance 2024-01-12 Pierre Renucci

This paper develops a machine learning-driven portfolio optimization framework for virtual bidding in electricity markets considering both risk constraint and price sensitivity. The algorithmic trading strategy is developed from the…

Machine Learning · Computer Science 2021-04-08 Yinglun Li , Nanpeng Yu , Wei Wang

Neural combinatorial optimization (NCO) has gained significant attention due to the potential of deep learning to efficiently solve combinatorial optimization problems. NCO has been widely applied to job shop scheduling problems (JSPs) with…

Artificial Intelligence · Computer Science 2024-12-19 Igor G. Smit , Yaoxin Wu , Pavel Troubil , Yingqian Zhang , Wim P. M. Nuijten

We investigate portfolio optimization in financial markets from a trading and risk management perspective. We term this task Risk-Aware Trading Portfolio Optimization (RATPO), formulate the corresponding optimization problem, and propose an…

Risk Management · Quantitative Finance 2025-03-07 Marco Bianchetti , Gabriele D'Acunto , Gianmarco De Francisci Morales , Yuko Kuroki , Marco Scaringi , Fabio Vitale

Large language models (LLMs) have shown strong reasoning capabilities and are increasingly explored for financial trading. Existing LLM-based trading agents, however, largely focus on single-step prediction and lack integrated mechanisms…

Multiagent Systems · Computer Science 2025-11-18 Bijia Liu , Ronghao Dang

Predicting firm's failure is one of the most interesting subjects for investors and decision makers. In this paper, a bankruptcy prediction model is proposed based on Artificial Neural networks (ANN). Taking into consideration that the…

Risk Management · Quantitative Finance 2019-07-30 Fatima Zahra Azayite , Said Achchab

The decisions traders make to buy or sell an asset depend on various analyses, with expertise required to identify patterns that can be exploited for profit. In this paper we identify novel features extracted from emergent and…

Statistical Finance · Quantitative Finance 2024-09-09 Gabriel Rodrigues Palma , Mariusz Skoczeń , Phil Maguire

We introduce a novel approach to options trading strategies using a highly scalable and data-driven machine learning algorithm. In contrast to traditional approaches that often require specifications of underlying market dynamics or…

Portfolio Management · Quantitative Finance 2024-11-22 Wee Ling Tan , Stephen Roberts , Stefan Zohren

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

Recent advances in reinforcement learning, such as Dynamic Sampling Policy Optimization (DAPO), show strong performance when paired with large language models (LLMs). Motivated by this success, we ask whether similar gains can be realized…

Computational Engineering, Finance, and Science · Computer Science 2025-05-27 Ruijian Zha , Bojun Liu

Dynamic portfolio optimization is the process of sequentially allocating wealth to a collection of assets in some consecutive trading periods, based on investors' return-risk profile. Automating this process with machine learning remains a…

Machine Learning · Computer Science 2019-01-28 Pengqian Yu , Joon Sern Lee , Ilya Kulyatin , Zekun Shi , Sakyasingha Dasgupta

Stock exchanges are considered major players in financial sectors of many countries. Most Stockbrokers, who execute stock trade, use technical, fundamental or time series analysis in trying to predict stock prices, so as to advise clients.…

Statistical Finance · Quantitative Finance 2015-02-24 B. W. Wanjawa , L. Muchemi

Random utility maximisation (RUM) models are one of the cornerstones of discrete choice modelling. However, specifying the utility function of RUM models is not straightforward and has a considerable impact on the resulting interpretable…

Machine Learning · Statistics 2024-04-23 Jose Ignacio Hernandez , Niek Mouter , Sander van Cranenburgh