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Generative models for financial time series often create data that look realistic and even reproduce stylized facts such as fat tails or volatility clustering. However, these apparent successes break down under trading backtests: models…

Statistical Finance · Quantitative Finance 2026-01-21 Fan Zhang , Jiabin Luo , Zheng Zhang , Shuanghong Huang , Zhipeng Liu , Yu Chen

The notion of concept drift refers to the phenomenon that the distribution, which is underlying the observed data, changes over time; as a consequence machine learning models may become inaccurate and need adjustment. While there do exist…

Machine Learning · Computer Science 2020-06-24 Fabian Hinder , Barbara Hammer

Concept drift is a phenomenon in which the distribution of a data stream changes over time in unforeseen ways, causing prediction models built on historical data to become inaccurate. While a variety of automated methods have been developed…

Machine Learning · Computer Science 2023-08-10 Weikai Yang , Zhen Li , Mengchen Liu , Yafeng Lu , Kelei Cao , Ross Maciejewski , Shixia Liu

As financial markets grow increasingly complex in the big data era, accurate stock prediction has become more critical. Traditional time series models, such as GRUs, have been widely used but often struggle to capture the intricate…

Statistical Finance · Quantitative Finance 2025-08-27 Peng Zhu , Yuante Li , Yifan Hu , Sheng Xiang , Qinyuan Liu , Dawei Cheng , Yuqi Liang

Deploying robust machine learning models has to account for concept drifts arising due to the dynamically changing and non-stationary nature of data. Addressing drifts is particularly imperative in the security domain due to the…

Cryptography and Security · Computer Science 2022-06-16 Aditya Kuppa , Nhien-An Le-Khac

Algorithmic trading relies on machine learning models to make trading decisions. Despite strong in-sample performance, these models often degrade when confronted with evolving real-world market regimes, which can shift dramatically due to…

Machine Learning · Computer Science 2026-01-27 Haochong Xia , Simin Li , Ruixiao Xu , Zhixia Zhang , Hongxiang Wang , Zhiqian Liu , Teng Yao Long , Molei Qin , Chuqiao Zong , Bo An

The assessment of process mining techniques using real-life data is often compromised by the lack of ground truth knowledge, the presence of non-essential outliers in system behavior and recording errors in event logs. Using synthetically…

Databases · Computer Science 2025-01-27 Dominique Sommers , Natalia Sidorova , Boudewijn van Dongen

Generative Recommendation has emerged as a promising paradigm, reformulating recommendation as a sequence-to-sequence generation task over hierarchical Semantic IDs. However, existing methods suffer from a critical issue we term Semantic…

Information Retrieval · Computer Science 2026-01-09 Chengcheng Guo , Kuo Cai , Yu Zhou , Qiang Luo , Ruiming Tang , Han Li , Kun Gai , Guorui Zhou

AI-based digital twins are at the leading edge of the Industry 4.0 revolution, which are technologically empowered by the Internet of Things and real-time data analysis. Information collected from industrial assets is produced in a…

Machine Learning · Computer Science 2023-03-20 Jesus L. Lobo , Ibai Laña , Eneko Osaba , Javier Del Ser

The notion of concept drift refers to the phenomenon that the distribution, which is underlying the observed data, changes over time; as a consequence machine learning models may become inaccurate and need adjustment. Many unsupervised…

Machine Learning · Computer Science 2022-02-22 Fabian Hinder , Valerie Vaquet , Barbara Hammer

Predictive services nowadays play an important role across all business sectors. However, deployed machine learning models are challenged by changing data streams over time which is described as concept drift. Prediction quality of models…

Machine Learning · Computer Science 2020-12-09 Lucas Baier , Josua Reimold , Niklas Kühl

Data in the real world often has an evolving distribution. Thus, machine learning models trained on such data get outdated over time. This phenomenon is called model drift. Knowledge of this drift serves two purposes: (i) Retain an accurate…

Machine Learning · Computer Science 2025-03-11 Pranoy Panda , Kancheti Sai Srinivas , Vineeth N Balasubramanian , Gaurav Sinha

This paper presents a new financial market simulator that may be used as a tool in both industry and academia for research in market microstructure. It allows multiple automated traders and/or researchers to simultaneously connect to an…

Trading and Market Microstructure · Quantitative Finance 2020-08-31 Thiago W. Alves , Ionut Florescu , George Calhoun , Dragos Bozdog

The notion of drift refers to the phenomenon that the distribution, which is underlying the observed data, changes over time. Albeit many attempts were made to deal with drift, formal notions of drift are application-dependent and…

Machine Learning · Computer Science 2019-12-05 Fabian Hinder , André Artelt , Barbara Hammer

Temporal data distribution shift is prevalent in the financial text. How can a financial sentiment analysis system be trained in a volatile market environment that can accurately infer sentiment and be robust to temporal data distribution…

Computation and Language · Computer Science 2023-10-20 Yue Guo , Chenxi Hu , Yi Yang

Online updating of time series forecasting models aims to tackle the challenge of concept drifting by adjusting forecasting models based on streaming data. While numerous algorithms have been developed, most of them focus on model design…

Machine Learning · Computer Science 2024-03-25 YiFan Zhang , Weiqi Chen , Zhaoyang Zhu , Dalin Qin , Liang Sun , Xue Wang , Qingsong Wen , Zhang Zhang , Liang Wang , Rong Jin

Money laundering presents a persistent challenge for financial institutions worldwide, while criminal organizations constantly evolve their tactics to bypass detection systems. Traditional anti-money laundering approaches mainly rely on…

Machine Learning · Computer Science 2026-04-06 Haseeb Tariq , Marwan Hassani

Market regimes is a popular topic in quantitative finance even though there is little consensus on the details of how they should be defined. They arise as a feature both in financial market prediction problems and financial market task…

Multiagent Systems · Computer Science 2022-02-04 Selim Amrouni , Aymeric Moulin , Tucker Balch

The lack of accessible transactional data significantly hinders machine learning research for Anti-Money Laundering (AML). Privacy and legal concerns prevent the sharing of real financial data, while existing synthetic generators focus on…

Machine Learning · Computer Science 2026-03-03 Montijn van den Beukel , Jože Martin Rožanec , Ana-Lucia Varbanescu

Machine learning (ML) based time series forecasting models often require and assume certain degrees of stationarity in the data when producing forecasts. However, in many real-world situations, the data distributions are not stationary and…

Machine Learning · Computer Science 2023-04-05 Ziyi Liu , Rakshitha Godahewa , Kasun Bandara , Christoph Bergmeir