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In this paper we study optimal trading strategies in a financial market in which stock returns depend on a hidden Gaussian mean reverting drift process. Investors obtain information on that drift by observing stock returns. Moreover, expert…

Portfolio Management · Quantitative Finance 2024-07-01 Abdelali Gabih , Hakam Kondakji , Ralf Wunderlich

The problem of the optimal allocation (in the expected mean square error sense) of a measurement budget for particle filtering is addressed. We propose three different optimal intermittent filters, whose optimality criteria depend on the…

Systems and Control · Electrical Eng. & Systems 2022-06-29 Antoine Aspeel , Amaury Gouverneur , Raphaël M. Jungers , Benoit Macq

We consider the problem of optimal bidding for virtual trading in two-settlement electricity markets. A virtual trader aims to arbitrage on the differences between day-ahead and real-time market prices; both prices, however, are random and…

Computer Science and Game Theory · Computer Science 2018-08-02 Sevi Baltaoglu , Lang Tong , Qing Zhao

Normalizing Flows explicitly maximize a full-dimensional likelihood on the training data. However, real data is typically only supported on a lower-dimensional manifold leading the model to expend significant compute on modeling noise.…

Machine Learning · Computer Science 2024-06-28 Peter Sorrenson , Felix Draxler , Armand Rousselot , Sander Hummerich , Lea Zimmermann , Ullrich Köthe

We study a dynamic portfolio optimization problem related to convergence trading, which is an investment strategy that exploits temporary mispricing by simultaneously buying relatively underpriced assets and selling short relatively…

Portfolio Management · Quantitative Finance 2019-10-08 Sühan Altay , Katia Colaneri , Zehra Eksi

In this paper, we formulate an optimal ordering policy as a stochastic control problem where each firm decides the amount of input goods to order from their upstream suppliers based on the current inventory level of its output good. For…

Optimization and Control · Mathematics 2022-09-13 Jose I. Caiza , Ian Walter , Jitesh H. Panchal , Junjie Qin , Philip E. Pare

We study the most famous example of a large financial market: the Arbitrage Pricing Model, where investors can trade in a one-period setting with countably many assets admitting a factor structure. We consider the problem of maximising…

Portfolio Management · Quantitative Finance 2020-10-06 Laurence Carassus , Miklos Rasonyi

In this paper, we propose an unsupervised framework based on normalizing flows that harmonizes MR images to mimic the distribution of the source domain. The proposed framework consists of three steps. First, a shallow harmonizer network is…

Computer Vision and Pattern Recognition · Computer Science 2023-01-30 Farzad Beizaee , Christian Desrosiers , Gregory A. Lodygensky , Jose Dolz

When prices reflect all available information, they oscillate around an equilibrium level. This oscillation is the result of the temporary market impact caused by waves of buyers and sellers. This price behavior can be approximated through…

Trading and Market Microstructure · Quantitative Finance 2020-03-25 Alexander Lipton , Marcos Lopez de Prado

This work focuses on the mathematical study of constant function market makers. We rigorously establish the conditions for optimal trading under the assumption of a quasilinear, but not necessarily convex (or concave), trade function. This…

Optimization and Control · Mathematics 2024-05-14 C. Escudero , F. Lara , M. Sama

Several algorithms have been proposed to filter information on a complete graph of correlations across stocks to build a stock-correlation network. Among them the planar maximally filtered graph (PMFG) algorithm uses $3n-6$ edges to build a…

Statistical Finance · Quantitative Finance 2019-04-15 Seyed Soheil Hosseini , Nick Wormald , Tianhai Tian

Efficient gradient computation of the Jacobian determinant term is a core problem in many machine learning settings, and especially so in the normalizing flow framework. Most proposed flow models therefore either restrict to a function…

Machine Learning · Computer Science 2021-06-10 T. Anderson Keller , Jorn W. T. Peters , Priyank Jaini , Emiel Hoogeboom , Patrick Forré , Max Welling

Consider a trade market with one seller and multiple buyers. The seller aims to sell an indivisible item and maximize their revenue. This paper focuses on a simple and popular mechanism--the fixed-price mechanism. Unlike the standard…

Computer Science and Game Theory · Computer Science 2024-11-19 Zhikang Fan , Weiran Shen

Coupling-based normalizing flows (e.g. RealNVP) are a popular family of normalizing flow architectures that work surprisingly well in practice. This calls for theoretical understanding. Existing work shows that such flows weakly converge to…

Machine Learning · Computer Science 2022-10-26 Felix Draxler , Christoph Schnörr , Ullrich Köthe

Trading large volumes of a financial asset in order driven markets requires the use of algorithmic execution dividing the volume in many transactions in order to minimize costs due to market impact. A proper design of an optimal execution…

Trading and Market Microstructure · Quantitative Finance 2015-06-05 Enzo Busseti , Fabrizio Lillo

Optimal power flow (OPF) problems are non-convex and large-scale optimization problems with important applications in power networks. This paper proposes the scheduled-asynchronous algorithm to solve a distributed semidefinite programming…

Optimization and Control · Mathematics 2017-10-10 Chin-Yao Chang , Jorge Cortes , Sonia Martinez

In LLM training, normalization layers and optimizers are typically treated as independent design choices. In a 3x2 factorial at 1B parameters and 1000 training steps, we show this assumption can fail: Dynamic Erf (Derf; Chen & Liu, 2025)…

Artificial Intelligence · Computer Science 2026-04-03 Abdelrahman Abouzeid

Flow Matching (FM) is an effective framework for training a model to learn a vector field that transports samples from a source distribution to a target distribution. To train the model, early FM methods use random couplings, which often…

Computer Vision and Pattern Recognition · Computer Science 2025-05-30 Yexiong Lin , Yu Yao , Tongliang Liu

We develop new statistics for robustly filtering corrupted keypoint matches in the structure from motion pipeline. The statistics are based on consistency constraints that arise within the clustered structure of the graph of keypoint…

Computer Vision and Pattern Recognition · Computer Science 2022-01-19 Yunpeng Shi , Shaohan Li , Tyler Maunu , Gilad Lerman

We present a specialized scenario generation method that utilizes forecast information to generate scenarios for day-ahead scheduling problems. In particular, we use normalizing flows to generate wind power scenarios by sampling from a…

Optimization and Control · Mathematics 2022-07-12 Eike Cramer , Leonard Paeleke , Alexander Mitsos , Manuel Dahmen
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