Trading in Financial Markets with Online Algorithms

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Reference

Mohr, E., & Schmidt, G. . (2008). Trading in Financial Markets with Online Algorithms. In B. Fleischmann et all (Ed.), Operations Research Proceedings 2008. Heidelberg: Springer-Verlag Berlin.

Publication type

Chapter in Edited Book

Abstract

Summary. If we trade in financial markets we are interested in buying at low and selling at high prices. We suggest an active reservation price based trading algorithm which tries to solve this type of problem. The effectiveness of the algorithm is analyzed from a worst case point of view. We want to give an answer to the question if the suggested algorithm shows a superior behaviour to buy-and-hold policies using simulation on historical data.

Persons

Organizational Units

  • Institute of Information Systems