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We present a deep long short-term memory (LSTM)-based neural network for predicting asset prices, together with a successful trading strategy for generating profits based on the model's predictions. Our work is motivated by the fact that…

Statistical Finance · Quantitative Finance 2019-05-09 Chariton Chalvatzis , Dimitrios Hristu-Varsakelis

In today's financial markets, quantitative trading has become an essential trading method, with the MACD indicator widely employed in quantitative trading strategies. This paper begins by screening and cleaning the dataset, establishing a…

Computational Engineering, Finance, and Science · Computer Science 2025-02-05 Wangyu Chen , Zhenpeng Zhu

Symbolic regression is a technique that can automatically derive analytic models from data. Traditionally, symbolic regression has been implemented primarily through genetic programming that evolves populations of candidate solutions…

Neural and Evolutionary Computing · Computer Science 2025-04-24 Jiří Kubalík , Robert Babuška

Graph representation learning methods have been widely adopted in financial applications to enhance company representations by leveraging inter-firm relationships. However, current approaches face three key challenges: (1) The advantages of…

Statistical Finance · Quantitative Finance 2025-07-04 Yingjie Niu , Mingchuan Zhao , Valerio Poti , Ruihai Dong

Algorithmic trading refers to executing buy and sell orders for specific assets based on automatically identified trading opportunities. Strategies based on reinforcement learning (RL) have demonstrated remarkable capabilities in addressing…

Trading and Market Microstructure · Quantitative Finance 2024-07-03 Xi Cheng , Jinghao Zhang , Yunan Zeng , Wenfang Xue

The use of machine learning in algorithmic trading systems is increasingly common. In a typical set-up, supervised learning is used to predict the future prices of assets, and those predictions drive a simple trading and execution strategy.…

Machine Learning · Computer Science 2023-07-19 Vikram Duvvur , Aashay Mehta , Edward Sun , Bo Wu , Ken Yew Chan , Jeff Schneider

In recent years, high-frequency trading has emerged as a crucial strategy in stock trading. This study aims to develop an advanced high-frequency trading algorithm and compare the performance of three different mathematical models: the…

Trading and Market Microstructure · Quantitative Finance 2023-11-21 Jiahao Chen , Xiaofei Li

Machine learning driven trading strategies have garnered a lot of interest over the past few years. There is, however, limited consensus on the ideal approach for the development of such trading strategies. Further, most literature has…

Artificial Intelligence · Computer Science 2022-03-25 Prasang Gupta , Shaz Hoda , Anand Rao

Stock embedding is a method for vector representation of stocks. There is a growing demand for vector representations of stock, i.e., stock embedding, in wealth management sectors, and the method has been applied to various tasks such as…

Computation and Language · Computer Science 2024-08-07 Takehiro Takayanagi , Hiroki Sakaji , Kiyoshi Izumi

The training of deep neural networks is inherently a nonconvex optimization problem, yet standard approaches such as stochastic gradient descent (SGD) require simultaneous updates to all parameters, often leading to unstable convergence and…

Machine Learning · Computer Science 2025-08-07 Chengcheng Yan , Jiawei Xu , Zheng Peng , Qingsong Wang

In this paper, we propose an effective way for biasing the attention mechanism of a sequence-to-sequence neural machine translation (NMT) model towards the well-studied statistical word alignment models. We show that our novel guided…

Computation and Language · Computer Science 2016-07-07 Wenhu Chen , Evgeny Matusov , Shahram Khadivi , Jan-Thorsten Peter

Stock trading strategy plays a crucial role in investment companies. However, it is challenging to obtain optimal strategy in the complex and dynamic stock market. We explore the potential of deep reinforcement learning to optimize stock…

Machine Learning · Computer Science 2022-08-02 Xiao-Yang Liu , Zhuoran Xiong , Shan Zhong , Hongyang Yang , Anwar Walid

Recent researches on stock prediction using deep learning methods has been actively studied. This is the task to predict the movement of stock prices in the future based on historical trends. The approach to predicting the movement based…

Statistical Finance · Quantitative Finance 2021-10-01 Jaeyoung Cheong , Heejoon Lee , Minjung Kang

In this paper, we explore the application of Permutation Decision Trees (PDT) and strategic trailing for predicting stock market movements and executing profitable trades in the Indian stock market. We focus on high-frequency data using…

Machine Learning · Computer Science 2025-09-16 Vishrut Ramraj , Nithin Nagaraj , Harikrishnan N B

In recent years, deep or reinforcement learning approaches have been applied to optimise investment portfolios through learning the spatial and temporal information under the dynamic financial market. Yet in most cases, the existing…

Portfolio Management · Quantitative Finance 2024-04-16 Zhenglong Li , Vincent Tam

Data augmentation methods in combination with deep neural networks have been used extensively in computer vision on classification tasks, achieving great success; however, their use in time series classification is still at an early stage.…

Statistical Finance · Quantitative Finance 2020-10-29 Elizabeth Fons , Paula Dawson , Xiao-jun Zeng , John Keane , Alexandros Iosifidis

While Post-Earnings-Announcement Drift (PEAD) is one of the most studied stock market anomalies, the current literature is often limited in explaining this phenomenon by a small number of factors using simpler regression methods. In this…

Statistical Finance · Quantitative Finance 2020-09-08 Zhengxin Joseph Ye , Bjorn W. Schuller

The endeavor of stock trend forecasting is principally focused on predicting the future trajectory of the stock market, utilizing either manual or technical methodologies to optimize profitability. Recent advancements in machine learning…

Computational Engineering, Finance, and Science · Computer Science 2025-02-19 Mingjie Wang , Juanxi Tian , Mingze Zhang , Jianxiong Guo , Weijia Jia

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

We study the dynamic portfolio selection of an investor who uses deep learning methods to forecast stock market excess returns. In a two-asset allocation problem, deep neural networks -- both feedforward and long short-term memory (LSTM)…

General Finance · Quantitative Finance 2026-02-16 Mykola Babiak , Jozef Barunik