Factor graph switching portfolios under transaction costs

Andrew J. Bean, Andrew C. Singer

Research output: Chapter in Book/Report/Conference proceedingConference contribution

Abstract

We consider the sequential portfolio investment problem. Building on results in signal processing, machine learning, and other areas, we use factor graphs to develop new universal portfolio algorithms for switching strategies under transaction costs. These algorithms make use of a transition diagram in order to compactly represent and compute message passing on an exponentially increasing number of factor graphs. We compare this with a previous universal switching portfolios, demonstrating typically superior performance.

Original languageEnglish (US)
Title of host publication2011 IEEE International Conference on Acoustics, Speech, and Signal Processing, ICASSP 2011 - Proceedings
Pages5748-5751
Number of pages4
DOIs
StatePublished - 2011
Event36th IEEE International Conference on Acoustics, Speech, and Signal Processing, ICASSP 2011 - Prague, Czech Republic
Duration: May 22 2011May 27 2011

Publication series

NameICASSP, IEEE International Conference on Acoustics, Speech and Signal Processing - Proceedings
ISSN (Print)1520-6149

Other

Other36th IEEE International Conference on Acoustics, Speech, and Signal Processing, ICASSP 2011
Country/TerritoryCzech Republic
CityPrague
Period5/22/115/27/11

Keywords

  • factor graphs
  • portfolios
  • sum-product
  • transaction costs
  • universal

ASJC Scopus subject areas

  • Software
  • Signal Processing
  • Electrical and Electronic Engineering

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