Lucena Builds Reinforcement Learning into Strategy Research

The "reinforcement learning" helps Lucena refine its predictive analytics algorithms.

erez-katz-lucena-research

Lucena already uses machine-learning algorithms to identify repeatable patterns in market and economic data that can be used to predict future stock movements. For example, Lucena uses a "Genetic Algorithm"─an evolutionary, survival-of-the-fittest approach─which analyzes multiple, random permutations of fundamental, macroeconomic and technical indicators, and selects the most-fitted combination of factors to perform predictive analytics, then repeats the process multiple times until the "fittest

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Systematic tools gain favor in fixed income

Automation is enabling systematic strategies in fixed income that were previously reserved for equities trading. The tech gap between the two may be closing, but differences remain.

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