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Cryptocurrency price dynamics are driven largely by microstructural supply demand imbalances in the limit order book (LOB), yet the highly noisy nature of LOB data complicates the signal extraction process. Prior research has demonstrated…

Machine Learning · Computer Science 2025-06-11 Haochuan Wang

We develop a rigorous walk-forward validation framework for algorithmic trading designed to mitigate overfitting and lookahead bias. Our methodology combines interpretable hypothesis-driven signal generation with reinforcement learning and…

Trading and Market Microstructure · Quantitative Finance 2025-12-16 Gagan Deep , Akash Deep , William Lamptey

Accurately forecasting the direction of financial returns poses a formidable challenge, given the inherent unpredictability of financial time series. The task becomes even more arduous when applied to cryptocurrency returns, given the…

Statistical Finance · Quantitative Finance 2023-12-29 Raffaele Giuseppe Cestari , Filippo Barchi , Riccardo Busetto , Daniele Marazzina , Simone Formentin

Limit order books can transition rapidly from stable to stressed conditions, yet standard early-warning signals such as order flow imbalance and short-term volatility are inherently reactive. We formalise this limitation via a three-regime…

Machine Learning · Computer Science 2026-04-24 Prakul Sunil Hiremath , Vruksha Arun Hiremath

Bitcoin operates as a macroeconomic paradox: it combines a strictly predetermined, inelastic monetary issuance schedule with a stochastic, highly elastic demand for scarce block space. This paper empirically validates the Endogenous…

Statistical Finance · Quantitative Finance 2025-12-10 Hamoon Soleimani

Cryptocurrency markets exhibit pronounced momentum effects and regime-dependent volatility, presenting both opportunities and challenges for systematic trading strategies. We propose AdaptiveTrend, a multi-component algorithmic trading…

Computational Engineering, Finance, and Science · Computer Science 2026-02-13 Duc Bui , Thanh Nguyen

Sharding distributed ledgers is a promising on-chain solution for scaling blockchains but lacks formal grounds, nurturing skepticism on whether such complex systems can scale blockchains securely. We fill this gap by introducing the first…

Distributed, Parallel, and Cluster Computing · Computer Science 2023-05-23 Georgia Avarikioti , Antoine Desjardins , Eleftherios Kokoris-Kogias , Roger Wattenhofer

This work aims to analyse the predictability of price movements of cryptocurrencies on both hourly and daily data observed from January 2017 to January 2021, using deep learning algorithms. For our experiments, we used three sets of…

Statistical Finance · Quantitative Finance 2021-02-18 Marco Ortu , Nicola Uras , Claudio Conversano , Giuseppe Destefanis , Silvia Bartolucci

This paper poses a few fundamental questions regarding the attributes of the volume profile of a Limit Order Books stochastic structure by taking into consideration aspects of intraday and interday statistical features, the impact of…

Statistical Finance · Quantitative Finance 2015-04-23 Kylie-Anne Richards , Gareth W. Peters , William Dunsmuir

Conventional models of matching markets assume that monetary transfers can clear markets by compensating for utility differentials. However, empirical patterns show that such transfers often fail to close structural preference gaps. This…

Trading and Market Microstructure · Quantitative Finance 2025-11-27 Yao Wu

Few assets in financial history have been as notoriously volatile as cryptocurrencies. While the long term outlook for this asset class remains unclear, we are successful in making short term price predictions for several major crypto…

Trading and Market Microstructure · Quantitative Finance 2019-12-02 David Zhao , Alessandro Rinaldo , Christopher Brookins

We investigate the behavior of limit order books on the meso-scale motivated by order execution scheduling algorithms. To do so we carry out empirical analysis of the order flows from market and limit order submissions, aggregated from…

Trading and Market Microstructure · Quantitative Finance 2017-08-10 Kyle Bechler , Michael Ludkovski

With emergence of blockchain technologies and the associated cryptocurrencies, such as Bitcoin, understanding network dynamics behind Blockchain graphs has become a rapidly evolving research direction. Unlike other financial networks, such…

This paper offers a thorough examination of the univariate predictability in cryptocurrency time-series. By exploiting a combination of complexity measure and model predictions we explore the cryptocurrencies time-series forecasting task…

Statistical Finance · Quantitative Finance 2025-02-14 Francesco Puoti , Fabrizio Pittorino , Manuel Roveri

Understanding the emergence of universal features such as the stylized facts in markets is a long-standing challenge that has drawn much attention from economists and physicists. Most existing models, such as stochastic volatility models,…

Trading and Market Microstructure · Quantitative Finance 2021-01-18 Fabin Shi , Nathan Aden , Shengda Huang , Neil Johnson , Xiaoqian Sun , Jinhua Gao , Li Xu , Huawei Shen , Xueqi Cheng , Chaoming Song

In light of micro-scale inefficiencies induced by the high degree of fragmentation of the Bitcoin trading landscape, we utilize a granular data set comprised of orderbook and trades data from the most liquid Bitcoin markets, in order to…

Trading and Market Microstructure · Quantitative Finance 2021-08-24 Jakob Albers , Mihai Cucuringu , Sam Howison , Alexander Y. Shestopaloff

This paper shows that temporal CNNs accurately predict bitcoin spot price movements from limit order book data. On a 2 second prediction time horizon we achieve 71\% walk-forward accuracy on the popular cryptocurrency exchange coinbase. Our…

Statistical Finance · Quantitative Finance 2020-10-06 Rakshit Jha , Mattijs De Paepe , Samuel Holt , James West , Shaun Ng

The aim of this paper is to investigate the effect of a novel method called linear law-based feature space transformation (LLT) on the accuracy of intraday price movement prediction of cryptocurrencies. To do this, the 1-minute interval…

Statistical Finance · Quantitative Finance 2023-05-09 Marcell T. Kurbucz , Péter Pósfay , Antal Jakovác

Based on the cryptocurrency market dynamics, this study presents a general methodology for analyzing evolving correlation structures in complex systems using the $q$-dependent detrended cross-correlation coefficient \rho(q,s). By extending…

Statistical Finance · Quantitative Finance 2025-10-29 Marcin Wątorek , Marija Bezbradica , Martin Crane , Jarosław Kwapień , Stanisław Drożdż

The blockchain paradigm provides a mechanism for content dissemination and distributed consensus on Peer-to-Peer (P2P) networks. While this paradigm has been widely adopted in industry, it has not been carefully analyzed in terms of its…

Distributed, Parallel, and Cluster Computing · Computer Science 2020-12-22 Aditya Gopalan , Abishek Sankararaman , Anwar Walid , Sriram Vishwanath
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