The Application of Machine Learning to Algorithmic Trading in Financial Markets

Kehan Feng

2024

Abstract

The surge in global digitalization has propelled stock market forecasting into a new era of advanced technology, transforming traditional trading models. This paper explores the use of Artificial Intelligence (AI) in algorithmic trading, highlighting its potential to optimize trading strategies, improve forecasting accuracy, and manage risk. By utilizing the AI techniques such as the deep learning, machine learning and reinforcement learning algorithms, this study examines how these methods can improve the market forecasting by analysing the structured and unstructured data. Artificial intelligence-driven trading systems, while promising, face significant challenges, including model interpretability, applicability in volatile markets, and. To address these challenges, this paper discusses the importance of integrating interpretable AI tools, as well as the potential of emerging technologies such as the transfer learning and federated learning. These innovations aim to improve model transparency, adaptability, and privacy, paving the way for more robust and reliable AI applications in financial markets.

Paper Citation

in Harvard Style

Feng K. (2024). The Application of Machine Learning to Algorithmic Trading in Financial Markets. In Proceedings of the 1st International Conference on E-commerce and Artificial Intelligence - Volume 1: ECAI; ISBN 978-989-758-726-9, SciTePress, pages 407-411. DOI: 10.5220/0013264200004568

in Bibtex Style

@conference{ecai24,
author={Kehan Feng},
title={The Application of Machine Learning to Algorithmic Trading in Financial Markets},
booktitle={Proceedings of the 1st International Conference on E-commerce and Artificial Intelligence - Volume 1: ECAI},
year={2024},
pages={407-411},
publisher={SciTePress},
organization={INSTICC},
doi={10.5220/0013264200004568},
isbn={978-989-758-726-9},
}

in EndNote Style

TY - CONF

JO - Proceedings of the 1st International Conference on E-commerce and Artificial Intelligence - Volume 1: ECAI
TI - The Application of Machine Learning to Algorithmic Trading in Financial Markets
SN - 978-989-758-726-9
AU - Feng K.
PY - 2024
SP - 407
EP - 411
DO - 10.5220/0013264200004568
PB - SciTePress