Honors Thesis Presentation: "Application of Reinforcement Learning Techniques in Financial Stock Market Making"

Abstract: In this age of high-frequency trading, market-making has been a favorable strategy for investors to gain profit from the stock market. Among different techniques of optimizing the market making strategy, reinforcement learning is one of the most popular methods studied and adopted. This presentation gives a review of multiple order-placing strategies in the stock market designed with reinforcement learning techniques and algorithms, with the goal of identifying an optimal order-placing strategy that maximizes the market maker's profit gained from trading. In the presentation, I will explain key reinforcement learning concepts, elaborate on why certain algorithms are adopted as favorable techniques for the case of market-making in the stock market, and compare the simulated performances of several designs of market-making reinforcement learning setup.

Host: Jose Figueroa-Lopez

(Access Zoom Presentation HERE)