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Evolutionary Computation and Trade Execution

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Natural Computing in Computational Finance

Part of the book series: Studies in Computational Intelligence ((SCI,volume 293))

Summary

Although there is a plentiful literature on the use of evolutionary methodologies for the trading of financial assets, little attention has been paid to the issue of efficient trade execution. Trade execution is concerned with the actual mechanics of buying or selling the desired amount of a financial instrument of interest. This chapter introduces the concept of trade execution and outlines the limited prior work applying evolutionary computing methods for this task. Furthermore, we build an Agent-based Artificial Stock Market and apply a Genetic Algorithm to evolve an efficient trade execution strategy. Finally, we suggest a number of opportunities for future research.

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Author information

Authors and Affiliations

  1. Natural Computing Research and Applications Group, University College Dublin, Ireland

    Wei Cui, Anthony Brabazon & Michael O’Neill

  2. School of Business, University College Dublin, Ireland

    Wei Cui & Anthony Brabazon

  3. School of Computer Science and Informatics, University College Dublin, Ireland

    Michael O’Neill

Authors
  1. Wei Cui
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  2. Anthony Brabazon
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  3. Michael O’Neill
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Editor information

Editors and Affiliations

  1. Quinn School of Business, University College Dublin , Belfield, Dublin 4, Ireland

    Anthony Brabazon

  2. UCD CASL , 8 BelfieldOffice Park, Beaver Row, Clonskeagh, Dublin 4, Ireland

    Michael O’Neill

  3. University of Basel Wirtschaftswissenschaftliches Zentrum (WWZ) Abteilung Quantitative Methoden , Peter Merian-Weg 6, 4002, Basel, Switzerland

    Dietmar G. Maringer

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Cui, W., Brabazon, A., O’Neill, M. (2010). Evolutionary Computation and Trade Execution. In: Brabazon, A., O’Neill, M., Maringer, D.G. (eds) Natural Computing in Computational Finance. Studies in Computational Intelligence, vol 293. Springer, Berlin, Heidelberg. https://doi.org/10.1007/978-3-642-13950-5_4

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  • DOI: https://doi.org/10.1007/978-3-642-13950-5_4

  • Publisher Name: Springer, Berlin, Heidelberg

  • Print ISBN: 978-3-642-13949-9

  • Online ISBN: 978-3-642-13950-5

  • eBook Packages: EngineeringEngineering (R0)

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