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Introducing an algebraic framework for modeling limit order books (LOBs) with tools from physics and stochastic processes, our proposed framework captures the creation and annihilation of orders, order matching, and the time evolution of…

Trading and Market Microstructure · Quantitative Finance 2024-06-10 Johannes Bleher , Michael Bleher

We propose a novel denoising diffusion generative model for predicting nonlinear fluid fields named FluidDiff. By performing a diffusion process, the model is able to learn a complex representation of the high-dimensional dynamic system,…

Machine Learning · Computer Science 2023-01-31 Gefan Yang , Stefan Sommer

Diffusion models have emerged as powerful generative frameworks by progressively adding noise to data through a forward process and then reversing this process to generate realistic samples. While these models have achieved strong…

Machine Learning · Computer Science 2025-03-04 Xingzhuo Guo , Yu Zhang , Baixu Chen , Haoran Xu , Jianmin Wang , Mingsheng Long

Many commonly used liquidity measures are based on snapshots of the state of the limit order book (LOB) and can thus only provide information about instantaneous liquidity, and not regarding the local liquidity regime. However, trading in…

Statistical Finance · Quantitative Finance 2014-06-23 Efstathios Panayi , Gareth Peters

Offline reinforcement learning (RL) aims to learn policies from pre-existing datasets without further interactions, making it a challenging task. Q-learning algorithms struggle with extrapolation errors in offline settings, while supervised…

Artificial Intelligence · Computer Science 2025-01-03 Zhengbang Zhu , Minghuan Liu , Liyuan Mao , Bingyi Kang , Minkai Xu , Yong Yu , Stefano Ermon , Weinan Zhang

Stochastic reduced-order models are widely used to represent the effective dynamics of complex systems, but estimating their drift and diffusion coefficients from data remains challenging. Standard approaches often rely on short-time…

Machine Learning · Statistics 2026-04-28 Ludovico T. Giorgini

Financial markets are complex systems characterized by high statistical noise, nonlinearity, volatility, and constant evolution. Thus, modeling them is extremely hard. Here, we address the task of generating realistic and responsive Limit…

Trading and Market Microstructure · Quantitative Finance 2025-11-21 Leonardo Berti , Bardh Prenkaj , Paola Velardi

We exploit cutting-edge deep learning methodologies to explore the predictability of high-frequency Limit Order Book mid-price changes for a heterogeneous set of stocks traded on the NASDAQ exchange. In so doing, we release `LOBFrame', an…

Trading and Market Microstructure · Quantitative Finance 2024-06-05 Antonio Briola , Silvia Bartolucci , Tomaso Aste

In order-driven markets, limit-order book (LOB) resiliency is an important microscopic indicator of market quality when the order book is hit by a liquidity shock and plays an essential role in the design of optimal submission strategies of…

Trading and Market Microstructure · Quantitative Finance 2018-02-27 Hai-Chuan Xu , Wei Chen , Xiong Xiong , Wei Zhang , Wei-Xing Zhou , H Eugene Stanley

This paper studies optical flow estimation, a critical task in motion analysis with applications in autonomous navigation, action recognition, and film production. Traditional optical flow methods require consecutive frames, which are often…

Computer Vision and Pattern Recognition · Computer Science 2025-06-12 Mo Zhou , Jianwei Wang , Xuanmeng Zhang , Dylan Campbell , Kai Wang , Long Yuan , Wenjie Zhang , Xuemin Lin

We develop a new market-making model, from the ground up, which is tailored towards high-frequency trading under a limit order book (LOB), based on the well-known classification of order types in market microstructure. Our flexible…

Trading and Market Microstructure · Quantitative Finance 2020-01-31 Baron Law , Frederi Viens

In this work, we present a continuous-time large-population game for modeling market microstructure betweentwo consecutive trades. The proposed modeling framework is inspired by our previous work [23]. In this framework, the Limit Order…

Trading and Market Microstructure · Quantitative Finance 2017-06-21 Roman Gayduk , Sergey Nadtochiy

To model the indeterminacy of human behaviors, stochastic trajectory prediction requires a sophisticated multi-modal distribution of future trajectories. Emerging diffusion models have revealed their tremendous representation capacities in…

Computer Vision and Pattern Recognition · Computer Science 2023-03-21 Weibo Mao , Chenxin Xu , Qi Zhu , Siheng Chen , Yanfeng Wang

This work proposes DeepFolio, a new model for deep portfolio management based on data from limit order books (LOB). DeepFolio solves problems found in the state-of-the-art for LOB data to predict price movements. Our evaluation consists of…

Recent advances have introduced diffusion models for probabilistic streamflow forecasting, demonstrating strong early flood-warning skill. However, current implementations rely on recurrent Long Short-Term Memory (LSTM) backbones and…

Machine Learning · Computer Science 2025-12-16 Yihan Wang , Annan Yu , Lujun Zhang , Charuleka Varadharajan , N. Benjamin Erichson

Most recent works focus on answering first order logical queries to explore the knowledge graph reasoning via multi-hop logic predictions. However, existing reasoning models are limited by the circumscribed logical paradigms of training…

Machine Learning · Computer Science 2023-06-07 Xiaoying Xie , Biao Gong , Yiliang Lv , Zhen Han , Guoshuai Zhao , Xueming Qian

Diffusion models have recently shown promise in time series forecasting, particularly for probabilistic predictions. However, they often fail to achieve state-of-the-art point estimation performance compared to regression-based methods.…

Artificial Intelligence · Computer Science 2025-11-25 Hang Ding , Xue Wang , Tian Zhou , Tao Yao

In real-time systems, the application's behavior has to be predictable at compile-time to guarantee timing constraints. However, modern streaming applications which exhibit adaptive behavior due to mode switching at run-time, may degrade…

Distributed, Parallel, and Cluster Computing · Computer Science 2018-07-16 Jiali Teddy Zhai , Sobhan Niknam , Todor Stefanov

Continuous-time long-term event prediction plays an important role in many application scenarios. Most existing works rely on autoregressive frameworks to predict event sequences, which suffer from error accumulation, thus compromising…

Machine Learning · Computer Science 2023-11-03 Wang-Tao Zhou , Zhao Kang , Ling Tian

One of the key decisions in execution strategies is the choice between a passive (liquidity providing) or an aggressive (liquidity taking) order to execute a trade in a limit order book (LOB). Essential to this choice is the fill…

Statistical Finance · Quantitative Finance 2023-06-12 Alvaro Arroyo , Alvaro Cartea , Fernando Moreno-Pino , Stefan Zohren