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In this paper, we propose and analyze a novel combination of multilevel Richardson-Romberg (ML2R) and importance sampling algorithm, with the aim of reducing the overall computational time, while achieving desired root-mean-squared error…

计算金融 · 定量金融 2022-09-05 Devang Sinha , Siddhartha P. Chakrabarty

A novel generative machine learning approach for the simulation of sequences of financial price data with drawdowns quantifiably close to empirical data is introduced. Applications such as pricing drawdown insurance options or developing…

计算金融 · 定量金融 2023-09-12 Emiel Lemahieu , Kris Boudt , Maarten Wyns

In the field of computational finance, one is commonly interested in the expected value of a financial derivative whose payoff depends on the solution of stochastic differential equations (SDEs). For multi-dimensional SDEs with…

数值分析 · 数学 2024-09-12 Chenxu Pang , Xiaojie Wang

Importance sampling is a promising variance reduction technique for Monte Carlo simulation based derivative pricing. Existing importance sampling methods are based on a parametric choice of the proposal. This article proposes an algorithm…

应用统计 · 统计学 2009-04-14 Jan C. Neddermeyer

Option valuation problems are often solved using standard Monte Carlo (MC) methods. These techniques can often be enhanced using several strategies especially when one discretizes the dynamics of the underlying asset, of which we assume…

计算金融 · 定量金融 2018-06-06 P. P. Osei , A. Jasra

Scientific machine learning has become an increasingly important tool in materials science and engineering. It is particularly well suited to tackle material problems involving many variables or to allow rapid construction of surrogates of…

数值分析 · 数学 2023-05-25 Ting Wang , Jaroslaw Knap

In this work, we propose a smart idea to couple importance sampling and Multilevel Monte Carlo (MLMC). We advocate a per level approach with as many importance sampling parameters as the number of levels, which enables us to compute the…

概率论 · 数学 2017-07-10 Ahmed Kebaier , Jérôme Lelong

We introduce a gradient-based learning method to automatically adapt Markov chain Monte Carlo (MCMC) proposal distributions to intractable targets. We define a maximum entropy regularised objective function, referred to as generalised speed…

机器学习 · 统计学 2020-01-07 Michalis K. Titsias , Petros Dellaportas

The Multilevel Monte Carlo (MLMC) method has proven to be an effective variance-reduction statistical method for Uncertainty Quantification (UQ) in Partial Differential Equation (PDE) models, combining model computations at different levels…

数学软件 · 计算机科学 2023-05-24 Santiago Badia , Jerrad Hampton , Javier Principe

We propose a new least-squares Monte Carlo algorithm for the approximation of conditional expectations in the presence of stochastic derivative weights. The algorithm can serve as a building block for solving dynamic programming equations,…

统计理论 · 数学 2020-10-02 Christian Bender , Nikolaus Schweizer

The stochastic simulation algorithm (SSA) and the corresponding Monte Carlo (MC) method are among the most common approaches for studying stochastic processes. They rely on knowledge of interevent probability density functions (PDFs) and on…

统计计算 · 统计学 2024-02-12 S. Rusconi , E. Akhmatskaya , D. Sokolovski , N. Ballard , J. C. de la Cal

American and Bermudan-type financial instruments are often priced with specific Monte Carlo techniques whose efficiency critically depends on the effective dimensionality of the problem and the available computational power. In our work we…

证券定价 · 定量金融 2021-05-04 Riccardo Aiolfi , Nicola Moreni , Marco Bianchetti , Marco Scaringi , Filippo Fogliani

We introduce an approximation strategy for the discounted moments of a stochastic process that can, for a large class of problems, approximate the true moments. These moments appear in pricing formulas of financial products such as bonds…

数理金融 · 定量金融 2021-11-02 Chenyu Zhao , Misha van Beek , Peter Spreij , Makhtar Ba

This paper applies several well-known tricks from the numerical treatment of deterministic differential equations to improve the efficiency of the Multilevel Monte Carlo (MLMC) method for stochastic differential equations (SDEs) and…

数值分析 · 数学 2014-12-23 Eike H. Mueller , Rob Scheichl , Tony Shardlow

We propose a new forward-backward stochastic differential equation solver for high-dimensional derivatives pricing problems by combining deep learning solver with least square regression technique widely used in the least square Monte Carlo…

计算金融 · 定量金融 2020-10-14 Jian Liang , Zhe Xu , Peter Li

We introduce a novel and efficient algorithm called the stochastic approximate gradient descent (SAGD), as an alternative to the stochastic gradient descent for cases where unbiased stochastic gradients cannot be trivially obtained.…

机器学习 · 计算机科学 2020-02-14 Yixuan Qiu , Xiao Wang

The pricing of financial derivatives, which requires massive calculations and close-to-real-time operations under many trading and arbitrage scenarios, were largely infeasible in the past. However, with the advancement of modern computing,…

证券定价 · 定量金融 2019-06-18 Wei-Cheng Chen , Wei-Ho Chung

Optimizing machine learning algorithms that are used to solve the objective function has been of great interest. Several approaches to optimize common algorithms, such as gradient descent and stochastic gradient descent, were explored. One…

机器学习 · 计算机科学 2022-10-06 Hilal AlQuabeh , Farha AlBreiki , Dilshod Azizov

Optimizing or sampling complex cost functions of combinatorial optimization problems is a longstanding challenge across disciplines and applications. When employing family of conventional algorithms based on Markov Chain Monte Carlo (MCMC)…

机器学习 · 计算机科学 2025-08-15 Dmitrii Dobrynin , Masoud Mohseni , John Paul Strachan

This paper is a broad and accessible survey of the methods we have at our disposal for Monte Carlo gradient estimation in machine learning and across the statistical sciences: the problem of computing the gradient of an expectation of a…

机器学习 · 统计学 2020-09-30 Shakir Mohamed , Mihaela Rosca , Michael Figurnov , Andriy Mnih