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High-frequency trading (HFT) is an investing strategy that continuously monitors market states and places bid and ask orders at millisecond speeds. Traditional HFT approaches fit models with historical data and assume that future market…

交易与市场微观结构 · 定量金融 2025-05-23 Yang Li , Zhi Chen , Steve Yang

Traditional stochastic control methods in finance rely on simplifying assumptions that often fail in real world markets. While these methods work well in specific, well defined scenarios, they underperform when market conditions change. We…

计算金融 · 定量金融 2025-09-23 Yang Li , Zhi Chen , Steve Y. Yang , Ruixun Zhang

Traditional stochastic control methods in finance struggle in real world markets due to their reliance on simplifying assumptions and stylized frameworks. Such methods typically perform well in specific, well defined environments but yield…

计算金融 · 定量金融 2025-10-21 Yang Li , Zhi Chen

We examine optimal execution models that take into account both market microstructure impact and informational costs. Informational footprint is related to order flow and is represented by the trader's influence on the flow imbalance…

交易与市场微观结构 · 定量金融 2014-10-21 Kyle Bechler , Mike Ludkovski

Flow Matching (FM) models achieve remarkable results in generative tasks. Building upon diffusion models, FM's simulation-free training paradigm enables simplicity and efficiency but introduces a train-inference gap: model outputs cannot be…

机器学习 · 计算机科学 2026-01-30 Zhaoyi Li , Jingtao Ding , Yong Li , Shihua Li

Imitation learning is a promising approach for enabling generalist capabilities in humanoid robots, but its scaling is fundamentally constrained by the scarcity of high-quality expert demonstrations. This limitation can be mitigated by…

机器人学 · 计算机科学 2025-08-21 Quentin Rouxel , Clemente Donoso , Fei Chen , Serena Ivaldi , Jean-Baptiste Mouret

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…

交易与市场微观结构 · 定量金融 2015-06-05 Enzo Busseti , Fabrizio Lillo

Flow-based generative models, including diffusion models, excel at modeling continuous distributions in high-dimensional spaces. In this work, we introduce Flow Policy Optimization (FPO), a simple on-policy reinforcement learning algorithm…

机器学习 · 计算机科学 2025-08-04 David McAllister , Songwei Ge , Brent Yi , Chung Min Kim , Ethan Weber , Hongsuk Choi , Haiwen Feng , Angjoo Kanazawa

We study an optimal execution strategy for purchasing a large block of shares over a fixed time horizon. The execution problem is subject to a general price impact that gradually dissipates due to market resilience. We allow for general…

数理金融 · 定量金融 2026-04-14 Etienne Chevalier , Yadh Hafsi , Vathana Ly Vath , Sergio Pulido

We study optimal trade execution strategies in financial markets with discrete order flow. The agent has a finite liquidation horizon and must minimize price impact given a random number of incoming trade counterparties. Assuming that the…

交易与市场微观结构 · 定量金融 2012-05-07 Erhan Bayraktar , Mike Ludkovski

Optimal execution of a portfolio have been a challenging problem for institutional investors. Traders face the trade-off between average trading price and uncertainty, and traditional methods suffer from the curse of dimensionality. Here,…

投资组合管理 · 定量金融 2023-06-16 Xiaoyue Li , John M. Mulvey

We study optimal liquidation strategies under partial information for a single asset within a finite time horizon. We propose a model tailored for high-frequency trading, capturing price formation driven solely by order flow through…

数理金融 · 定量金融 2024-11-08 Etienne Chevalier , Yadh Hafsi , Vathana Ly Vath

In this paper, we introduce a novel reinforcement learning framework for optimal trade execution in a limit order book. We formulate the trade execution problem as a dynamic allocation task whose objective is the optimal placement of market…

交易与市场微观结构 · 定量金融 2026-01-28 Patrick Cheridito , Moritz Weiss

Execution algorithms are vital to modern trading, they enable market participants to execute large orders while minimising market impact and transaction costs. As these algorithms grow more sophisticated, optimising them becomes…

计算金融 · 定量金融 2025-10-28 Ollie Olby , Andreea Bacalum , Rory Baggott , Namid Stillman

In a fixed time horizon, appropriately executing a large amount of a particular asset -- meaning a considerable portion of the volume traded within this frame -- is challenging. Especially for illiquid or even highly liquid but also highly…

数理金融 · 定量金融 2023-08-15 David Evangelista , Yuri Thamsten

We study the optimal portfolio liquidation problem over a finite horizon in a limit order book with bid-ask spread and temporary market price impact penalizing speedy execution trades. We use a continuous-time modeling framework, but in…

概率论 · 数学 2014-01-10 Idris Kharroubi , Huyen Pham

Generative policies based on diffusion models and flow matching have shown strong promise for offline reinforcement learning (RL), but their applicability remains largely confined to continuous action spaces. To address a broader range of…

机器学习 · 计算机科学 2026-05-14 Fairoz Nower Khan , Nabuat Zaman Nahim , Ruiquan Huang , Haibo Yang , Peizhong Ju

This study investigates the development of an optimal execution strategy through reinforcement learning, aiming to determine the most effective approach for traders to buy and sell inventory within a finite time horizon. Our proposed model…

交易与市场微观结构 · 定量金融 2025-11-04 Yadh Hafsi , Edoardo Vittori

Decision-changing imitation is a prevalent phenomenon in financial markets, where investors imitate others' decision-changing rates when making their own investment decisions. In this work, we study the optimal investment problem under the…

系统与控制 · 电气工程与系统科学 2024-10-07 Huisheng Wang , H. Vicky Zhao

We analyze an optimal trade execution problem in a financial market with stochastic liquidity. To this end we set up a limit order book model in which both order book depth and resilience evolve randomly in time. Trading is allowed in both…

交易与市场微观结构 · 定量金融 2021-04-16 Julia Ackermann , Thomas Kruse , Mikhail Urusov
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