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In financial markets, the order flow, defined as the process assuming value one for buy market orders and minus one for sell market orders, displays a very slowly decaying autocorrelation function. Since orders impact prices, reconciling…

Statistical Finance · Quantitative Finance 2015-06-19 Damian Eduardo Taranto , Giacomo Bormetti , Fabrizio Lillo

Existing online change-point detection (CPD) methods rely on fixed-dimensional Euclidean summaries, implicitly assuming that distributional changes are well captured by moment-based or feature-based representations. They can obscure…

Methodology · Statistics 2026-05-25 Yingyan Zeng , Yujing Huang , Xiaoyu Chen

Early detection of fuel leakage at service stations with underground petroleum storage systems is a crucial task to prevent catastrophic hazards. Current data-driven fuel leakage detection methods employ offline statistical inventory…

Machine Learning · Computer Science 2024-10-15 Ruimin Chu , Li Chik , Yiliao Song , Jeffrey Chan , Xiaodong Li

We consider a high-dimensional dynamic pricing problem under non-stationarity, where a firm sells products to $T$ sequentially arriving consumers that behave according to an unknown demand model with potential changes at unknown times. The…

Methodology · Statistics 2023-03-21 Zifeng Zhao , Feiyu Jiang , Yi Yu , Xi Chen

Momentum strategies are an important part of alternative investments and are at the heart of commodity trading advisors (CTAs). These strategies have, however, been found to have difficulties adjusting to rapid changes in market conditions,…

Machine Learning · Statistics 2021-12-21 Kieran Wood , Stephen Roberts , Stefan Zohren

I present an overview of some recent advancements on the empirical analysis and theoretical modeling of the process of price formation in financial markets as the result of the arrival of orders in a limit order book exchange. After…

Trading and Market Microstructure · Quantitative Finance 2021-05-04 Fabrizio Lillo

Predictive business process monitoring aims at providing predictions about running instances by analyzing logs of completed cases in a business process. Recently, a lot of research focuses on increasing productivity and efficiency in a…

Artificial Intelligence · Computer Science 2021-09-23 Gyunam Park , Minseok Song

In this paper we propose a deep recurrent model based on the order flow for the stationary modelling of the high-frequency directional prices movements. The order flow is the microsecond stream of orders arriving at the exchange, driving…

Statistical Finance · Quantitative Finance 2020-04-06 Ye-Sheen Lim , Denise Gorse

Interactions among people or objects are often dynamic in nature and can be represented as a sequence of networks, each providing a snapshot of the interactions over a brief period of time. An important task in analyzing such evolving…

Social and Information Networks · Computer Science 2016-06-17 Leto Peel , Aaron Clauset

Financial markets exhibit an apparent paradox: while directional price movements remain largely unpredictable--consistent with weak-form efficiency--the magnitude of price changes displays systematic structure. Here we demonstrate that…

Trading and Market Microstructure · Quantitative Finance 2025-12-19 Mainak Singha

We present online prediction methods for time series that let us explicitly handle nonstationary artifacts (e.g. trend and seasonality) present in most real time series. Specifically, we show that applying appropriate transformations to…

Machine Learning · Statistics 2018-08-28 Christopher Xie , Avleen Bijral , Juan Lavista Ferres

Moments when a time series changes its behavior are called change points. Occurrence of change point implies that the state of the system is altered and its timely detection might help to prevent unwanted consequences. In this paper, we…

Machine Learning · Computer Science 2026-03-10 Mikhail Hushchyn , Kenenbek Arzymatov , Denis Derkach

Online change-point detection (OCPD) is important for application in various areas such as finance, biology, and the Internet of Things (IoT). However, OCPD faces major challenges due to high-dimensionality, and it is still rarely studied…

Machine Learning · Statistics 2019-06-10 Yang-Wen Sun , Katerina Papagiannouli , Vladmir Spokoiny

We propose a grid-based methodology for online changepoint detection that allows offline changepoint tests to be applied to sequentially observed data. The methodology achieves low update and storage costs by testing for changepoints over a…

Methodology · Statistics 2026-03-20 Per August Jarval Moen

In the educational domain, identifying students at risk of dropping out is essential for allowing educators to intervene effectively, improving both academic outcomes and overall student well-being. Data in educational settings often…

Computers and Society · Computer Science 2025-03-11 Jiabei Cheng , Zhen-Qun Yang , Jiannong Cao , Yu Yang , Kai Cheung Franky Poon , Daniel Lai

The aim of the present study is to detect abrupt trend changes in the mean of a multidimensional sequential signal. Directly inspired by papers of Fernhead and Liu ([4] and [5]), this work describes the signal in a hierarchical manner : the…

Machine Learning · Computer Science 2021-06-11 Olivier Sorba , C Geissler

Intra-day price variations in financial markets are driven by the sequence of orders, called the order flow, that is submitted at high frequency by traders. This paper introduces a novel application of the Sequence Generative Adversarial…

Statistical Finance · Quantitative Finance 2021-09-29 Ye-Sheen Lim , Denise Gorse

Order flow in equity markets is remarkably persistent in the sense that order signs (to buy or sell) are positively autocorrelated out to time lags of tens of thousands of orders, corresponding to many days. Two possible explanations are…

Trading and Market Microstructure · Quantitative Finance 2014-12-02 Bence Toth , Imon Palit , Fabrizio Lillo , J. Doyne Farmer

Graph-based change point detection (CPD) play an irreplaceable role in discovering anomalous graphs in the time-varying network. While several techniques have been proposed to detect change points by identifying whether there is a…

Social and Information Networks · Computer Science 2022-12-20 Yongshun Gong , Xue Dong , Jian Zhang , Meng Chen

A new class of stochastic processes called independent and periodically identically distributed (i.p.i.d.) processes is defined to capture periodically varying statistical behavior. A novel Bayesian theory is developed for detecting a…

Signal Processing · Electrical Eng. & Systems 2019-04-09 Taposh Banerjee , Prudhvi Gurram , Gene Whipps