System for foreign exchange trading using genetic algorithms and reinforcement learning

  • Authors:
  • A. Hryshko;T. Downs

  • Affiliations:
  • School of Information Technology & Electrical Engineering, University of Queensland, QLD, 4072, Australia;School of Information Technology & Electrical Engineering, University of Queensland, QLD, 4072, Australia

  • Venue:
  • International Journal of Systems Science
  • Year:
  • 2004

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Abstract

Foreign exchange trading has emerged recently as a significant activity in many countries. As with most forms of trading, the activity is influenced by many random parameters so that the creation of a system that effectively emulates the trading process will be very helpful. A major issue for traders in the deregulated Foreign Exchange Market is when to sell and when to buy a particular currency in order to maximize profit. This paper presents novel trading strategies based on the machine learning methods of genetic algorithms and reinforcement learning.