Biologically Inspired Algorithms for Financial Modelling

by Anthony Brabazon, Michael O'Neill

Predicting the future for financial gain is a difficult, sometimes profitable activity. The focus of this book is the application of biologically inspired algorithms (BIAs) to financial modelling. In a detailed introduction, the authors explain computer trading on financial markets and the difficulties faced in financial market modelling. Then Part I provides a thorough guide to the various bioinspired methodologies – neural networks, evolutionary computing (particularly genetic algorithms and grammatical evolution), particle swarm and ant colony optimization, and immune systems. Part II brings the reader through the development of market trading systems. Finally, Part III examines real-world case studies where BIA methodologies are employed to construct trading systems in equity and foreign exchange markets, and for the prediction of corporate bond ratings and corporate failures. The book was written for those in the finance community who want to apply BIAs in financial modelling, and for computer scientists who want an introduction to this growing application domain.

Genres: Finance

292 pages, Hardcover

First published December 16, 2005

Reviews

[Yao Dong · Rating 5 out of 5]

Very recommended for an introductory read with some programming/algorithm background.

- Clear description of various biologically inspired algorithms, and their applications in financial modelling. The advantages and limitations are stated very clearly, inspiring further thoughts.
- With enough programming background, I was able to quickly structure a brief algorithms in mind with the help of the texts and pseudo-codes.
- Very thorough reference gives easy access to further readings and related researches.