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Related papers: Signature Decomposition Method Applying to Pair Tr…

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The signature is a representation of a path as an infinite sequence of its iterated integrals. Under certain assumptions, the signature characterizes the path, up to translation and reparameterization. Therefore, a crucial question of…

Methodology · Statistics 2023-09-20 Adeline Fermanian , Jiawei Chang , Terry Lyons , Gérard Biau

Within the context of multivariate time series segmentation this paper proposes a method inspired by a posteriori optimal trading. After a normalization step time series are treated channel-wise as surrogate stock prices that can be traded…

Machine Learning · Statistics 2023-11-10 Mogens Graf Plessen

The class of joint decoder of probabilistic fingerprinting codes is of utmost importance in theoretical papers to establish the concept of fingerprint capacity. However, no implementation supporting a large user base is known to date. This…

Information Theory · Computer Science 2023-07-26 Peter Meerwald , Teddy Furon

This paper studies four trading algorithms of a professional trader at a multilateral trading facility, observing a realistic two-sided limit order book whose dynamics are driven by the order book events. The identity of the trader can be…

Trading and Market Microstructure · Quantitative Finance 2015-01-13 Qinghua Li

Great research efforts have been devoted to exploiting deep neural networks in stock prediction. While long-range dependencies and chaotic property are still two major issues that lower the performance of state-of-the-art deep learning…

Statistical Finance · Quantitative Finance 2021-11-02 Junran Wu , Ke Xu , Xueyuan Chen , Shangzhe Li , Jichang Zhao

In this study, we explore the synergy of deep learning and financial market applications, focusing on pair trading. This market-neutral strategy is integral to quantitative finance and is apt for advanced deep-learning techniques. A pivotal…

Machine Learning · Computer Science 2024-02-07 Junwei Su , Shan Wu , Jinhui Li

Signature verification is an authentication technique that considers handwritten signature as a biometric. From a biometric perspective this project made use of automatic means through an integration of intelligent algorithms to perform…

Signal Processing · Electrical Eng. & Systems 2018-07-30 Rozita Teymourzadeh , Martin kizito , Kok Wai Chan , Mok Vee Hoong

Decentralized exchanges (DEXs) form a cornerstone of the decentralized finance (DeFi) ecosystem, processing token trades worth billions of dollars daily. Yet, a significant fraction of these trades are suboptimal: alternative routing paths…

Computational Engineering, Finance, and Science · Computer Science 2025-09-26 Yu Zhang , Claudio J. Tessone

We propose a new method for solving optimal stopping problems (such as American option pricing in finance) under minimal assumptions on the underlying stochastic process $X$. We consider classic and randomized stopping times represented by…

Probability · Mathematics 2021-05-04 Christian Bayer , Paul Hager , Sebastian Riedel , John Schoenmakers

This paper explores the novel deep learning Transformers architectures for high-frequency Bitcoin-USDT log-return forecasting and compares them to the traditional Long Short-Term Memory models. A hybrid Transformer model, called…

Statistical Finance · Quantitative Finance 2023-02-28 Fazl Barez , Paul Bilokon , Arthur Gervais , Nikita Lisitsyn

This paper is concerned with an optimal strategy for simultaneously trading a pair of stocks. The idea of pairs trading is to monitor their price movements and compare their relative strength over time. A pairs trade is triggered by the…

Optimization and Control · Mathematics 2023-10-25 Emily Crawford Das , Jingzhi Tie , Qing Zhang

Pairs Trading is carried out in the financial market to earn huge profits from known equilibrium relation between pairs of stock. In financial markets, seldom it is seen that stock pairs are correlated at particular lead or lag. This…

Statistical Finance · Quantitative Finance 2020-06-24 Kartikay Gupta , Niladri Chatterjee

This article provides a concise overview of some of the recent advances in the application of rough path theory to machine learning. Controlled differential equations (CDEs) are discussed as the key mathematical model to describe the…

Machine Learning · Computer Science 2023-02-10 Adeline Fermanian , Terry Lyons , James Morrill , Cristopher Salvi

In this article we introduce the insertion method for reconstructing the path from its signature, i.e. inverting the signature of a path. For this purpose, we prove that a converging upper bound exists for the difference between the…

Probability · Mathematics 2019-07-22 Jiawei Chang , Terry Lyons

Topological data analysis leverages topological features to analyze datasets, with applications in diverse fields like medical sciences and biology. A key tool of this theory is the persistence diagram, which encodes topological information…

Algebraic Topology · Mathematics 2024-10-22 Michael Etienne Van Huffel , Olympio Hacquard , Vadim Lebovici , Matteo Palo

One of the challenging research problems in the domain of time series analysis and forecasting is making efficient and robust prediction of stock market prices. With rapid development and evolution of sophisticated algorithms and with the…

Other Computer Science · Computer Science 2016-05-13 Jaydip Sen , Tamal Datta Chaudhuri

Rough path theory is focused on capturing and making precise the interactions between highly oscillatory and non-linear systems. It draws on the analysis of LC Young and the geometric algebra of KT Chen. The concepts and the uniform…

Probability · Mathematics 2014-05-20 Terry Lyons

Stock price prediction is of significant importance in quantitative investment. Existing approaches encounter two primary issues: First, they often overlook the crucial role of capturing short-term stock fluctuations for predicting…

Computational Engineering, Finance, and Science · Computer Science 2024-11-12 Chengqi Dong , Zhiyuan Cao , S Kevin Zhou , Jia Liu

Deep hedging uses recurrent neural networks to hedge financial products that cannot be fully hedged in incomplete markets. Previous work in this area focuses on minimizing some measure of quadratic hedging error by calculating pathwise…

Mathematical Finance · Quantitative Finance 2025-10-21 Alok Das , Kiseop Lee

The symbolic dynamics technique is well-known for low-dimensional dynamical systems and chaotic maps, and lies at the roots of the thermodynamic formalism of dynamical systems. Here we show that this technique can also be successfully…

Chaotic Dynamics · Physics 2017-08-02 Dan Xu , Christian Beck