Paper proposes a deep reinforcement learning model for forex trading that considers transaction costs.
problem Trading in forex markets with high transaction costs and non-stationary data.
method Deep reinforcement learning model considering transaction costs and online learning.
result Maximizes profit while keeping transaction costs low in non-stationary markets.
AI algorithms outperform traditional trading methods in stock markets.
problem Traditional trading methods struggle with risk management and edge over classical approaches.
method Used Deep Reinforcement Learning (DRL) algorithms (DDQN and PPO) to compare with Buy and Hold benchmark.
result DRL algorithms provide a substantial edge over classical approaches in terms of risk-adjusted returns.
Paper proposes using CNN for stock trading with data normalization.
problem Improving stock trading accuracy in volatile markets.
method Developed CNN-based trading framework with novel data normalization.
result CNN-based framework outperforms other methods on 29 stocks.
Portfolio traders strive to identify dynamic portfolio allocation schemes so that their total budgets are efficiently allocated through the investment horizon. This study proposes a novel portfolio trading strategy in which an intelligent agent is trained to identify an optimal trading action by using deep Q-learning. …
We discuss the objectives of automation equipped with non-trivial decision making, or creating artificial intelligence, in the financial markets and provide a possible alternative. Intelligence might be an unintended consequence of curiosity left to roam free, best exemplified by a frolicking infant. For this unintenti…
Intelligent Momentum Transformer outperforms traditional trading strategies.
problem Improving time-series momentum and mean-reversion trading strategies.
method Attention-based deep-learning architecture (Momentum Transformer) combining attention and LSTM.
result Momentum Transformer outperforms benchmarks and adapts to new market regimes.
SentARL uses sentiment features to improve trading profits.
problem Improving profit stability in single-asset trading.
method Sentiment-Aware Reinforcement Learning (SentARL) system.
result SentARL consistently outperforms baselines across multiple assets and conditions.
RL agent learns to avoid market spoofing.
problem Avoiding subtle non-normative behavior in trading agents.
method Learned recognizer incorporated into RL agent's reward function.
result RL agent avoids spoofing while remaining profitable.
Stochasticity is key for machine learning's robustness and generalizability.
problem Machine learning's need for robustness and generalizability.
method Review of ML literature and biological intelligence.
result Stochasticity is a critical ingredient for intelligent systems in ML.
QTNet uses deep reinforcement learning to automate trading strategies.
problem Handling noisy and high-frequency financial data, balancing exploration and exploitation.
method QTNet employs deep reinforcement learning (DRL) with imitative learning to autonomously formulate trading strategies.
result QTNet demonstrates proficiency in extracting robust market features and adaptability to diverse conditions.
FinAgent tackles financial trading with multimodal data and advanced AI.
problem Challenges in handling multimodal financial data and limited generalizability.
method Multimodal foundational agent with tool augmentation, dual-level reflection, and diversified memory retrieval.
result Significantly outperforms state-of-the-art baselines in financial trading tasks.
AI models assess psychological risks in currency trading.
problem Identifying psychological risks in currency traders.
method Developed a decision tree model to identify patterns in historical data.
result Enhanced decision-making through real-time alerts.
The potential of machine learning to automate and control nonlinear, complex systems is well established. These same techniques have always presented potential for use in the investment arena, specifically for the managing of equity portfolios. In this paper, the opportunity for such exploitation is investigated throug…
Survey examines LLMs in financial trading.
problem Using LLMs to outperform professional traders in finance.
method Comprehensive review of current research on LLMs in financial trading.
result LLMs can potentially outperform professional traders in backtesting.
Pipeline for comparing trading algorithms in finance and crypto.
problem Disconnected research and applications in algorithmic trading.
method General pipeline for designing, programming, and evaluating trading strategies.
result Systematic comparison of trading algorithms in finance and crypto.
A new model predicts price concavity and reversion after metaorder execution.
problem Modeling market response to exogenous trades on limit order books.
method Developed a Non-Markovian Zero Intelligence model with a time-weighted mid-price return function.
result The model predicts concave price paths and price reversion after metaorder execution.
A new trading model combines GARCH and PPO for better stock trading profits.
problem Limited performance of reinforcement learning in stock market trading.
method Parallel-network continuous trading model using GARCH and PPO.
result The model achieves more profit compared to traditional reinforcement learning methods.
AI system analyzes financial analyst recommendations and track records for portfolio construction.
problem Human PMs rely on analyst recommendations and track records for portfolio decisions.
method Develops AI-based Recommender Systems to replicate analyst conviction and track records.
result AI can improve portfolio construction by integrating analyst conviction and track records.
With the increasing power of computers and the rapid development of self-learning methodologies such as machine learning and artificial intelligence, the problem of constructing an automatic Financial Trading Systems (FTFs) becomes an increasingly attractive research topic. An intuitive way of developing such a trading…
In this paper, we examine the problem of missing data in high-dimensional datasets by taking into consideration the Missing Completely at Random and Missing at Random mechanisms, as well as theArbitrary missing pattern. Additionally, this paper employs a methodology based on Deep Learning and Swarm Intelligence algorit…
We propose a mathematical model of momentum risk-taking, which is essentially real-time risk management focused on short-term volatility of stock markets. Its implementation, our fully automated momentum equity trading system presented systematically, proved to be successful in extensive historical and real-time experi…
This paper proposes a trading strategy using TD3 for stock and cryptocurrency markets.
problem Predicting price movements in financial markets using historical data.
method Twin-Delayed DDPG (TD3) for continuous action space in algorithmic trading.
result The proposed strategy improves trading performance based on Return and Sharpe ratio metrics.
Enhances trading metrics with financially grounded loss functions.
problem Challenges in financial deep learning, especially interpretability.
method Introduces loss functions derived from finance metrics and turnover regularization.
result Proposed loss functions outperform traditional methods in trading metrics.
Paper proposes a new reinforcement learning framework for cryptocurrency market making.
problem Improving profit and stability in cryptocurrency market making.
method Event-based reinforcement learning environment, training two policy-based agents with neural networks and various reward functions.
result Improved profit and stability demonstrated over time-based approach.
Improved DRQN-ARBR model for better stock trading performance.
problem Irrational investor behavior impacts stock market efficiency.
method DRQN-ARBR model with LSTM layer and ARBR sentiment indicators.
result Significantly improved stock trading performance.
The study uses AI to optimize trading in FX markets by considering size-dependent fees and risk-aversion.
problem Optimizing trading in FX markets with size-dependent fees and risk-aversion.
method Fitted Natural Actor-Critic (FNC) Reinforcement Learning algorithm.
result The algorithm effectively trades with variable order sizes, reducing transaction costs and promoting risk-averse behavior.
Standard models in economics stress the role of intelligent agents who maximize utility. However, there may be situations where, for some purposes, constraints imposed by market institutions dominate intelligent agent behavior. We use data from the London Stock Exchange to test a simple model in which zero intelligence…
TradeExpert uses a mix of LLMs to predict stock movements.
problem Synthesizing insights from diverse financial data sources.
method A mix of four specialized LLMs analyzing different data types, with a General Expert LLM synthesizing the insights.
result TradeExpert outperforms existing benchmarks in stock movement prediction.
Improved stock trading model using sentiment analysis and machine learning.
problem Enhancing reinforcement learning models for high-frequency stock trading.
method Combining deep Q network with ARBR sentiment indicator, applying PCA and LSTM, incorporating market sentiment.
result Significantly improved performance in stock trading, achieving a maximum annualized rate of return of 54.5%.
QTMRL uses RL with multi-indicators to improve trading adaptability.
problem Traditional trading models fail in volatile markets due to rigid assumptions.
method Combines multi-indicators with RL for adaptive portfolio management.
result QTMRL outperforms baselines in profitability and risk control.
Many learning agents impact a financial market model, showing complex dynamics.
problem Understanding the dynamics of financial markets with multiple learning agents.
method Agent-based model of financial market with multiple reinforcement learning agents interacting.
result Inclusion of learning agents changes market dynamics to match empirical data.
AI enhances quantitative investment for better returns and risk control.
problem Achieving stable returns through AI in quantitative investment.
method Application of AI technology in quantitative investment strategies.
result AI improves investment performance and risk management.
Paper proposes MSSDDPG for better financial trading strategies.
problem Extracting accurate features from noisy, non-stationary financial time series.
method Multi-scale stroke deep deterministic policy gradient reinforcement learning model (MSSDDPG).
result MSSDDPG outperforms other strategies in China's CSI 300 and SSE Composite.
DRL automates stock market trading with a 2.68 Sharpe Ratio.
problem Automating profitable trades in the stock market.
method Formulated as a POMDP, solved with TD3 algorithm.
result 2.68 Sharpe Ratio on unseen data.
Artificial intelligence, or AI, enhancements are increasingly shaping our daily lives. Financial decision-making is no exception to this. We introduce the notion of AI Alter Egos, which are shadow robo-investors, and use a unique data set covering brokerage accounts for a large cross-section of investors over a sample …
The autonomous trading agent is one of the most actively studied areas of artificial intelligence to solve the capital market portfolio management problem. The two primary goals of the portfolio management problem are maximizing profit and restrainting risk. However, most approaches to this problem solely take account …
Model shows how traders' interactions can create market patterns.
problem Explaining stylized facts in high-frequency trading markets.
method Agent-based model of limit order book trading with zero-intelligence agents.
result Scale-free connectivity between traders reproduces market patterns, while no interaction does not.
Even though computational intelligence techniques have been extensively utilized in financial trading systems, almost all developed models use the time series data for price prediction or identifying buy-sell points. However, in this study we decided to use 2-D stock bar chart images directly without introducing any ad…
A novel approach combines feature importance scores with deep learning for forex price prediction.
problem Improving forex price prediction using deep learning models.
method Feature importance recap combined with stacking models.
result Proper feature selection significantly improves model performance.
Research shows collective learning across diverse environments is hard due to privacy and security concerns.
problem Privacy, security, and equity concerns restrict information sharing in diverse AI environments.
method Characterized learning algorithms as choice correspondences, provided minimum requirements for rational learning algorithms.
result The only rational learning algorithm in heterogeneous environments is unilaterally learning from a single environment without information sharing.
Hour-Aware Adaptive Risk Management for Autonomous Memecoin Trading
problem Autonomous memecoin trading system performance
method Hour-of-day effects, filter precision, fragility
result 40.5% win rate, mean per-trade return of +0.62%, cumulative +117.7%
Enhanced Momentum Transformer outperforms traditional trading strategies.
problem Improving trading performance in equities with evolving market conditions.
method Building a Momentum Transformer using an attention mechanism combined with LSTM, capturing long-term dependencies and transaction costs.
result Average returns of 4.14% and Sharpe ratio of 1.12, similar to original results but with higher volatility.
Paper proposes a reinforcement learning method for trading using expert trajectories.
problem Inability of existing methods to handle long-term goals and delayed rewards in futures trading.
method Modeling futures trading as MDP, using reinforcement learning with expert trajectories and multiple short-term alpha factors.
result The proposed method outperforms traditional and deep learning methods in trading performance.
This paper optimizes AI inference on edge devices with reduced communication and computation costs.
problem Efficiently performing AI inference on resource-constrained edge devices with reduced communication and computation costs.
method A three-step framework for effective inference: model split point selection, communication-aware model compression, and task-oriented encoding of intermediate features.
result Our proposed framework achieves a better trade-off and significantly reduces inference latency compared to baseline methods.
The team predicts foreign exchange rates using clustering and attention models.
problem Complexity and unexpected events in foreign exchange markets.
method Clustering and attention models applied to historical data.
result Improved event-driven price prediction for oversold scenarios.
Modeling high-frequency speculative markets as auction search processes.
problem Understanding trading dynamics in high-frequency order-driven markets.
method Total order book model with diffusion-drift-reaction model, inspired by foraging and chemotaxis.
result Analytic and numerical analysis of trading performance in various search mechanisms.
DBOT uses AI to automate long-term stock valuation.
problem Automating long-term stock valuation using AI.
method DBOT uses generative AI to reason about company valuations.
result DBOT can value any publicly traded company and is comparable to Aswath Damodaran.
Hybrid model uses LLM to build transparent Bayesian networks for trading decisions.
problem Rigorous and transparent reasoning required in financial trading, especially for options strategies.
method Combines LLM strengths with Bayesian Networks, using LLM to construct context-specific networks and select relevant data.
result Empirically, the hybrid system outperforms market benchmarks with superior risk-adjusted performance.