Financial Services

Areas of Focus

• Virtual stock market
• Double action back testing
• Algorithmic trading
• Human trader and algo trader interaction
• Stocks and options scanner
• Neural networks
• Parallel genetic algorithm

Innovation Activities Relevant to Financial Services Industry

The virtual stock market provides a unique platform to study the dynamics of human trader and algorithmic agent interaction. The platform provides a test-bed for testing novel trading strategies and their consistency during different phases of the market in a double-auction mode or in the back-testing mode.

The trading strategies range from simple random strategies to more sophisticated strategies that can adapt and evolve depending on the market condition. One of the novel aspects of the project is the development of a scanner that dynamically adapts to the current market condition and chooses the most preferred stock, which could then be used for different option strategies (Dr. Srinivas Raghavendra).

Keywords:

Virtual Stock Market; Double Action Back Testing; Algorithmic Trading; Human Trader and Algo Trader Interaction; Stocks and Options Scanner; Neural Networks; Parallel Genetic Algorithm