Financial markets witness high levels of activity at certain times but remain calm at others. This makes the flow of physical time discontinuous. Therefore, to use physical time scales for studying financial time series runs the risk of missing important activities. An alternative approach is to...

"Finance students and practitioners may ask: Can machines learn everything? Where could AI help me? Computing students or practitioners may ask: which of my skills could contribute to finance? Where in finance should I pay attention? This book aims to answer these questions. No prior knowledge...

Financial markets witness high levels of activity at certain times but remain calm at others. This makes the flow of physical time discontinuous. Therefore, to use physical time scales for studying financial time series runs the risk of missing important activities. An alternative approach is to...

The prices of the option and futures of a stock both reflect the market's expectation of futures changes of the stock's price. Their prices normally align with each other within a limited window. When they do not, arbitrage opportunities arise: an investor who spots the misalignment will be able...

This paper presents and formalizes the Market Fraction Hypothesis (MFH), and also tests it under empirical datasets. The MFH states that the fraction of the different types of trading strategies that exist in a financial market changes (swings) over time. However, while such swinging has been...

This paper formalizes observations made under agent-based artificial stock market models into a concrete hypothesis, which is called the Dinosaur Hypothesis. This hypothesis states that the behavior of financial markets constantly changes and that the trading strategies in a market need to...