Change search
CiteExportLink to record
Permanent link

Direct link
Cite
Citation style
  • harvard-cite-them-right
  • apa
  • ieee
  • modern-language-association-8th-edition
  • vancouver
  • Other style
More styles
Language
  • de-DE
  • en-GB
  • en-US
  • fi-FI
  • nn-NO
  • nn-NB
  • sv-SE
  • Other locale
More languages
Output format
  • html
  • text
  • asciidoc
  • rtf
Hierarchical Temporal Memory-based algorithmic trading of financial markets
University of Borås, School of Business and IT. (CSL@BS)
University of Borås, School of Business and IT. (CSL@BS)
University of Borås, School of Business and IT. (CSL@BS)
2012 (English)Conference paper, Published paper (Refereed)
Abstract [en]

This paper explores the possibility of using the Hierarchical Temporal Memory (HTM) machine learning technology to create a profitable software agent for trading financial markets. Technical indicators, derived from intraday tick data for the E-mini S&P 500 futures market (ES), were used as features vectors to the HTM models. All models were configured as binary classifiers, using a simple buy-and-hold trading strategy, and followed a supervised training scheme. The data set was divided into a training set, a validation set and three test sets; bearish, bullish and horizontal. The best performing model on the validation set was tested on the three test sets. Artificial Neural Networks (ANNs) were subjected to the same data sets in order to benchmark HTM performance. The results suggest that the HTM technology can be used together with a feature vector of technical indicators to create a profitable trading algorithm for financial markets. Results also suggest that HTM performance is, at the very least, comparable to commonly applied neural network models.

Place, publisher, year, edition, pages
IEEE , 2012.
Keywords [en]
Machine learning, Data mining, Algorithmic trading
National Category
Computer Sciences Computer and Information Sciences
Research subject
Bussiness and IT
Identifiers
URN: urn:nbn:se:hb:diva-6846DOI: 10.1109/CIFEr.2012.6327784ISI: 000310365100022Local ID: 2320/11579ISBN: 978-1-4673-1802-0 (print)OAI: oai:DiVA.org:hb-6846DiVA, id: diva2:887553
Conference
Computational Intelligence for Financial Engineering & Economics (CIFEr), New York, NY, 2012
Available from: 2015-12-22 Created: 2015-12-22 Last updated: 2018-01-10

Open Access in DiVA

fulltext(824 kB)1633 downloads
File information
File name FULLTEXT01.pdfFile size 824 kBChecksum SHA-512
569522367b3ffa878912b012254a012cbb8a6d29d1d5f8be1726ffa6db604a178719379005ff1a87839012e367c71a34a50d1a632745a8614060e3e33aa8e11e
Type fulltextMimetype application/pdf

Other links

Publisher's full text

Authority records

Gabrielsson, PatrickKönig, RikardJohansson, Ulf

Search in DiVA

By author/editor
Gabrielsson, PatrickKönig, RikardJohansson, Ulf
By organisation
School of Business and IT
Computer SciencesComputer and Information Sciences

Search outside of DiVA

GoogleGoogle Scholar
Total: 1633 downloads
The number of downloads is the sum of all downloads of full texts. It may include eg previous versions that are now no longer available

doi
isbn
urn-nbn

Altmetric score

doi
isbn
urn-nbn
Total: 395 hits
CiteExportLink to record
Permanent link

Direct link
Cite
Citation style
  • harvard-cite-them-right
  • apa
  • ieee
  • modern-language-association-8th-edition
  • vancouver
  • Other style
More styles
Language
  • de-DE
  • en-GB
  • en-US
  • fi-FI
  • nn-NO
  • nn-NB
  • sv-SE
  • Other locale
More languages
Output format
  • html
  • text
  • asciidoc
  • rtf