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Machine learning (especially reinforcement learning) methods for trading are increasingly reliant on simulation for agent training and testing. Furthermore, simulation is important for validation of hand-coded trading strategies and for…

Trading and Market Microstructure · Quantitative Finance 2019-12-12 Svitlana Vyetrenko , David Byrd , Nick Petosa , Mahmoud Mahfouz , Danial Dervovic , Manuela Veloso , Tucker Hybinette Balch

We present a framework for model-free learning of event-triggered control strategies. Event-triggered methods aim to achieve high control performance while only closing the feedback loop when needed. This enables resource savings, e.g.,…

Systems and Control · Electrical Eng. & Systems 2021-04-26 Niklas Funk , Dominik Baumann , Vincent Berenz , Sebastian Trimpe

We introduce and study a simple model of a limit order-driven market. Traders in this model can either trade at the market price or place a limit order, i.e. an instruction to buy (sell) a certain amount of the stock if its price falls…

Statistical Mechanics · Physics 2009-10-31 Sergei Maslov

Multivariate Hawkes processes are a widely used class of self-exciting point processes, but maximum likelihood estimation naively scales as $O(N^2)$ in the number of events. The canonical linear exponential Hawkes process admits a faster…

Machine Learning · Computer Science 2026-05-07 Ahmer Raza , Hudson Smith

High-frequency trading requires fast data processing without information lags for precise stock price forecasting. This high-paced stock price forecasting is usually based on vectors that need to be treated as sequential and…

Machine Learning · Computer Science 2023-05-16 Adamantios Ntakaris , Moncef Gabbouj , Juho Kanniainen

A key difficulty that arises from real event data is imprecision in the recording of event time-stamps. In many cases, retaining event times with a high precision is expensive due to the sheer volume of activity. Combined with practical…

Methodology · Statistics 2020-01-22 Leigh Shlomovich , Edward Cohen , Niall Adams , Lekha Patel

A quasi-centralized limit order book (QCLOB) is a limit order book (LOB) in which financial institutions can only access the trading opportunities offered by counterparties with whom they possess sufficient bilateral credit. We perform an…

Trading and Market Microstructure · Quantitative Finance 2016-10-11 Martin D. Gould , Mason A. Porter , Sam D. Howison

As a powerful tool of asynchronous event sequence analysis, point processes have been studied for a long time and achieved numerous successes in different fields. Among various point process models, Hawkes process and its variants attract…

Machine Learning · Statistics 2017-08-31 Hongteng Xu , Hongyuan Zha

This paper proposes a parametric approach for stochastic modeling of limit order markets. The models are obtained by augmenting classical perfectly liquid market models by few additional risk factors that describe liquidity properties of…

Trading and Market Microstructure · Quantitative Finance 2010-06-24 Pekka Malo , Teemu Pennanen

Integrating deep neural networks with the Hawkes process has significantly improved predictive capabilities in finance, health informatics, and information technology. Nevertheless, these models often face challenges in real-world settings,…

Machine Learning · Computer Science 2024-07-30 Xiaoyu Tan , Bin Li , Xihe Qiu , Jingjing Huang , Yinghui Xu , Wei Chu

This paper studies a limit order book (LOB) model, in which the order dynamics depend on both, the current best available prices and the current volume density functions. For the joint dynamics of the best bid price, the best ask price, and…

Mathematical Finance · Quantitative Finance 2016-05-23 Ulrich Horst , Dörte Kreher

The existing literature provides evidence that limit order book data can be used to predict short-term price movements in stock markets. This paper proposes a new neural network architecture for predicting return jump arrivals in equity…

Trading and Market Microstructure · Quantitative Finance 2021-09-17 Ymir Mäkinen , Juho Kanniainen , Moncef Gabbouj , Alexandros Iosifidis

Abstract. Most of the real world data we encounter are asynchronous event sequence, so the last decades have been characterized by the implementation of various point process into the field of social networks,electronic medical records and…

Machine Learning · Computer Science 2021-12-28 Zhi-yan Song , Jian-wei Liu , Lu-ning Zhang , Ya-nan Han

We present results demonstrating that an appropriately configured deep learning neural network (DLNN) can automatically learn to be a high-performing algorithmic trading system, operating purely from training-data inputs generated by…

Trading and Market Microstructure · Quantitative Finance 2020-12-03 Aaron Wray , Matthew Meades , Dave Cliff

Commonly used limit order book attributes are empirically considered based on NASDAQ ITCH data. It is shown that some of them have the properties drastically different from the ones assumed in many market dynamics study. Because of this…

Trading and Market Microstructure · Quantitative Finance 2016-03-31 Vladislav Gennadievich Malyshkin , Ray Bakhramov

Modern data acquisition routinely produce massive amounts of event sequence data in various domains, such as social media, healthcare, and financial markets. These data often exhibit complicated short-term and long-term temporal…

Machine Learning · Computer Science 2021-02-23 Simiao Zuo , Haoming Jiang , Zichong Li , Tuo Zhao , Hongyuan Zha

The ability to construct a realistic simulator of financial exchanges, including reproducing the dynamics of the limit order book, can give insight into many counterfactual scenarios, such as a flash crash, a margin call, or changes in…

Machine Learning · Computer Science 2023-11-28 Namid R. Stillman , Rory Baggott , Justin Lyon , Jianfei Zhang , Dingqiu Zhu , Tao Chen , Perukrishnen Vytelingum

Deep learning inference that needs to largely take place on the 'edge' is a highly computational and memory intensive workload, making it intractable for low-power, embedded platforms such as mobile nodes and remote security applications.…

Computer Vision and Pattern Recognition · Computer Science 2020-07-23 Andres Ussa , Chockalingam Senthil Rajen , Deepak Singla , Jyotibdha Acharya , Gideon Fu Chuanrong , Arindam Basu , Bharath Ramesh

This paper proposes a new meta-learning method -- named HARMLESS (HAwkes Relational Meta LEarning method for Short Sequences) for learning heterogeneous point process models from short event sequence data along with a relational network.…

Machine Learning · Computer Science 2019-09-06 Yujia Xie , Haoming Jiang , Feng Liu , Tuo Zhao , Hongyuan Zha

The Queue-Reactive model introduced by Huang et al. (2015) has become a standard tool for limit order book modeling, widely adopted by both researchers and practitioners for its simplicity and effectiveness. We present the Multidimensional…

Trading and Market Microstructure · Quantitative Finance 2025-01-16 Hamza Bodor , Laurent Carlier