Portfolio modeling for an algorithmic trading based on control theory

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Miniatura

Fecha

2018

Autores

Ruiz-Cruz, Riemann

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Editor

Elsevier

Resumen

Descripción

In the present paper, a mathematical model for a portfolio is proposed. This model is valid for operations of buying and selling shares of an asset in constant periods of time, additionally, it has a states space form which can be used to design a control law using control theory. The control law designed can be interpreted as a trading signal to reach a portfolio value desired. The mathematical model and control law proposed are validated by means simulations using real daily prices of Mexican stock exchange.

Palabras clave

Control of Nonlinear, Trading Algorithm, Portfolio Modeling

Citación

Ruiz-Cruz, Riemann (2018). Portfolio modeling for an algorithmic trading based on control theory, IFAC-PapersOnLine, 51(13): 390-395. https://doi.org/10.1016/j.ifacol.2018.07.310.