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In this paper we propose a deep recurrent architecture for the probabilistic modelling of high-frequency market prices, important for the risk management of automated trading systems. Our proposed architecture incorporates probabilistic…

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

We initiate the study of deep learning for the automated design of two-sided matching mechanisms. What is of most interest is to use machine learning to understand the possibility of new tradeoffs between strategy-proofness and stability.…

Computer Science and Game Theory · Computer Science 2023-11-16 Sai Srivatsa Ravindranath , Zhe Feng , Shira Li , Jonathan Ma , Scott D. Kominers , David C. Parkes

Although pair trading is the simplest hedging strategy for an investor to eliminate market risk, it is still a great challenge for reinforcement learning (RL) methods to perform pair trading as human expertise. It requires RL methods to…

Computational Finance · Quantitative Finance 2023-04-04 Weiguang Han , Jimin Huang , Qianqian Xie , Boyi Zhang , Yanzhao Lai , Min Peng

This paper develops a mathematical framework for the analysis of continuous-time trading strategies which, in contrast to the classical setting of continuous-time mathematical finance, does not rely on stochastic integrals or other…

Mathematical Finance · Quantitative Finance 2016-02-17 Candia Riga

In the last decade, the concept of path signature has achieved significant success in data science applications. It offers a powerful set of features that effectively capture and describe the characteristics of paths or sequential data.…

Rings and Algebras · Mathematics 2025-01-13 Ilya Chevyrev , Joscha Diehl , Kurusch Ebrahimi-Fard , Nikolas Tapia

Persistence diagrams (PDs), often characterized as sets of death and birth of homology class, have been known for providing a topological representation of a graph structure, which is often useful in machine learning tasks. Prior works rely…

Machine Learning · Computer Science 2022-09-29 Chau Pham , Trung Dang , Peter Chin

In the complex landscape of traditional futures trading, where vast data and variables like real-time Limit Order Books (LOB) complicate price predictions, we introduce the FutureQuant Transformer model, leveraging attention mechanisms to…

Trading and Market Microstructure · Quantitative Finance 2025-05-12 Wenhao Guo , Yuda Wang , Zeqiao Huang , Changjiang Zhang , Shumin ma

This paper presents a simple method for a posteriori (historical) multi-variate multi-stage optimal trading under transaction costs and a diversification constraint. Starting from a given amount of money in some currency, we analyze the…

Portfolio Management · Quantitative Finance 2018-08-03 Mogens Graf Plessen , Alberto Bemporad

Signature-based techniques give mathematical insight into the interactions between complex streams of evolving data. These insights can be quite naturally translated into numerical approaches to understanding streamed data, and perhaps…

Machine Learning · Statistics 2025-02-21 Terry Lyons , Andrew D. McLeod

The multivariate time series generated from merchant transaction history can provide critical insights for payment processing companies. The capability of predicting merchants' future is crucial for fraud detection and recommendation…

Machine Learning · Computer Science 2021-09-22 Chin-Chia Michael Yeh , Zhongfang Zhuang , Wei Zhang , Liang Wang

Channel charting, an unsupervised learning method that learns a low-dimensional representation from channel information to preserve geometrical property of physical space of user equipments (UEs), has drawn many attentions from both…

Information Theory · Computer Science 2024-04-01 Longhai Zhao , Yunchuan Yang , Qi Xiong , He Wang , Bin Yu , Feifei Sun , Chengjun Sun

Permutation approach is suggested as a method to investigate financial time series in micro scales. The method is used to see how high frequency trading in recent years has affected the micro patterns which may be seen in financial time…

Statistical Finance · Quantitative Finance 2014-08-06 Cina Aghamohammadi , Mehran Ebrahimian , Hamed Tahmooresi

We propose a new way of building portfolios of cryptocurrencies that provide good diversification properties to investors. First, we seek to filter these digital assets by creating some clusters based on their path signature. The goal is to…

Portfolio Management · Quantitative Finance 2024-11-01 Hugo Inzirillo

Link prediction is central to unraveling social network evolution and node relationships, as well as understanding the characteristic mechanisms of complex networks. Currently, research on link prediction for complex dynamic networks…

Systems and Control · Electrical Eng. & Systems 2026-02-16 Gaoxin Zhang , Ruixing Ren , Junhui Zhao , Xiaoke Sun

In financial markets, abnormal trading behaviors pose a serious challenge to market surveillance and risk management. What is worse, there is an increasing emergence of abnormal trading events that some experienced traders constitute a…

Trading and Market Microstructure · Quantitative Finance 2011-10-10 Junjie Wang , Shuigeng Zhou , Jihong Guan

Time series momentum strategies are widely applied in the quantitative financial industry and its academic research has grown rapidly since the work of Moskowitz, Ooi and Pedersen (2012). However, trading signals are usually obtained via…

Statistical Finance · Quantitative Finance 2021-11-09 Bruno P. C. Levy , Hedibert F. Lopes

The time proximity of high-frequency trades can contain a salient signal. In this paper, we propose a method to classify every trade, based on its proximity with other trades in the market within a short period of time, into five types. By…

Trading and Market Microstructure · Quantitative Finance 2024-03-15 Yutong Lu , Gesine Reinert , Mihai Cucuringu

In financial trading, return prediction is one of the foundation for a successful trading system. By the fast development of the deep learning in various areas such as graphical processing, natural language, it has also demonstrate…

Machine Learning · Computer Science 2025-03-24 Zijian Zhao , Xuming Zhang , Jiayu Wen , Mingwen Liu , Xiaoteng Ma

While time series momentum is a well-studied phenomenon in finance, common strategies require the explicit definition of both a trend estimator and a position sizing rule. In this paper, we introduce Deep Momentum Networks -- a hybrid…

Machine Learning · Statistics 2020-09-29 Bryan Lim , Stefan Zohren , Stephen Roberts

The 'signature method' refers to a collection of feature extraction techniques for multivariate time series, derived from the theory of controlled differential equations. There is a great deal of flexibility as to how this method can be…

Machine Learning · Computer Science 2021-02-09 James Morrill , Adeline Fermanian , Patrick Kidger , Terry Lyons