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We propose a Neural Hidden Markov Model (HMM) with Adaptive Granularity Attention (AGA) for high-frequency order flow modeling. The model addresses the challenge of capturing multi-scale temporal dynamics in financial markets, where…

Statistical Finance · Quantitative Finance 2026-03-24 Tianzuo Hu

Traditional Long Short-Term Memory (LSTM) networks are effective for handling sequential data but have limitations such as gradient vanishing and difficulty in capturing long-term dependencies, which can impact their performance in dynamic…

Computational Engineering, Finance, and Science · Computer Science 2026-04-29 Faezeh Sarlakifar , Mohammadreza Mohammadzadeh Asl , Sajjad Rezvani Khaledi , Armin Salimi-Badr

The algorithmic trading comes from digitalisation of the processing of trading assets on financial markets. Since 1980 the computerization of the stock market offers real time processing of financial information. This technological…

Trading and Market Microstructure · Quantitative Finance 2009-03-19 Victor Lebreton

We explore the application of LLM-driven algorithm optimization to several common tasks in quantitative finance. MadEvolve, a general-purpose algorithm optimization framework inspired by DeepMind's Alpha-Evolve, was recently developed to…

Trading and Market Microstructure · Quantitative Finance 2026-05-25 Yurii Kvasiuk , Tianyi Li , Owen Colegrove , Moritz Münchmeyer

We explore the competitive effects of reaction time of automated trading strategies in simulated financial markets containing a single exchange with public limit order book and continuous double auction matching. A large body of research…

Trading and Market Microstructure · Quantitative Finance 2020-12-01 Henry Hanifan , John Cartlidge

In recent years, the popularity of artificial intelligence has surged due to its widespread application in various fields. The financial sector has harnessed its advantages for multiple purposes, including the development of automated…

Trading and Market Microstructure · Quantitative Finance 2024-11-01 Vito Alessandro Monaco , Antonio Riva , Luca Sabbioni , Lorenzo Bisi , Edoardo Vittori , Marco Pinciroli , Michele Trapletti , Marcello Restelli

Volunteer computing grids offer super-computing levels of computing power at the relatively low cost of operating a server. In previous work, the authors have shown that it is possible to take traditionally iterative evolutionary algorithms…

Distributed, Parallel, and Cluster Computing · Computer Science 2017-02-09 Travis Desell , Malik Magdon-Ismail , Heidi Newberg , Lee A. Newberg , Boleslaw K. Szymanski , Carlos A. Varela

In the realm of cryptocurrency, the prediction of Bitcoin prices has garnered substantial attention due to its potential impact on financial markets and investment strategies. This paper propose a comparative study on hybrid machine…

Machine Learning · Computer Science 2024-01-02 Shun Liu , Kexin Wu , Chufeng Jiang , Bin Huang , Danqing Ma

With the application of artificial intelligence in the financial field, quantitative trading is considered to be profitable. Based on this, this paper proposes an improved deep recurrent DRQN-ARBR model because the existing quantitative…

Statistical Finance · Quantitative Finance 2021-12-01 Peng Zhou , Jingling Tang

Making use of swarm methods in financial market modeling of liquidity, and techniques from financial analysis in swarm analysis, holds the potential to advance both research areas. In swarm research, the use of game theory methods holds the…

Artificial Intelligence · Computer Science 2026-01-05 Alicia Vidler , Gal A. Kaminka

Financial trading is at the forefront of time-series analysis, and has grown hand-in-hand with it. The advent of electronic trading has allowed complex machine learning solutions to enter the field of financial trading. Financial markets…

Machine Learning · Computer Science 2020-10-23 Prakhar Ganesh , Puneet Rakheja

This study proposes a new framework to evolve efficacious yet parsimonious neural architectures for the movement prediction of stock market indices using technical indicators as inputs. In the light of a sparse signal-to-noise ratio under…

Neural and Evolutionary Computing · Computer Science 2021-11-17 Faizal Hafiz , Jan Broekaert , Davide La Torre , Akshya Swain

The concept of learning to optimize involves utilizing a trainable optimization strategy rather than relying on manually defined full gradient estimations such as ADAM. We present a framework that jointly trains the full gradient estimator…

Machine Learning · Computer Science 2026-01-30 Ruiqi Wang , Diego Klabjan

Systematic financial trading strategies account for over 80% of trade volume in equities and a large chunk of the foreign exchange market. In spite of the availability of data from multiple markets, current approaches in trading rely mainly…

Machine Learning · Computer Science 2020-07-01 Adriano Koshiyama , Sebastian Flennerhag , Stefano B. Blumberg , Nick Firoozye , Philip Treleaven

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

Straddle Option is a financial trading tool that explores volatility premiums in high-volatility markets without predicting price direction. Although deep reinforcement learning has emerged as a powerful approach to trading automation in…

General Finance · Quantitative Finance 2025-09-11 Yiran Wan , Xinyu Ying , Shengzhen Xu

Algorithmic trading requires short-term tactical decisions consistent with long-term financial objectives. Reinforcement Learning (RL) has been applied to such problems, but adoption is limited by myopic behaviour and opaque policies. Large…

Machine Learning · Computer Science 2025-10-28 Adam Darmanin , Vince Vella

An automatic program that generates constant profit from the financial market is lucrative for every market practitioner. Recent advance in deep reinforcement learning provides a framework toward end-to-end training of such trading agent.…

Trading and Market Microstructure · Quantitative Finance 2018-07-10 Chien Yi Huang

The installed amount of renewable energy has expanded massively in recent years. Wave energy, with its high capacity factors has great potential to complement established sources of solar and wind energy. This study explores the problem of…

Neural and Evolutionary Computing · Computer Science 2019-12-17 Mehdi Neshat , Ehsan Abbasnejad , Qinfeng Shi , Bradley Alexander , Markus Wagner

Inspired by the developments in deep generative models, we propose a model-based RL approach, coined Reinforced Deep Markov Model (RDMM), designed to integrate desirable properties of a reinforcement learning algorithm acting as an…

Trading and Market Microstructure · Quantitative Finance 2020-11-10 Tadeu A. Ferreira
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