High resolution microprice estimates from limit orderbook data using hyperdimensional vector Tsetlin Machines

Fuente: arXiv
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1. Verfasser: Blakely, Christian D.
Format: Preprint
Veröffentlicht: 2024
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author Blakely, Christian D.
author_facet Blakely, Christian D.
contents We propose an error-correcting model for the microprice, a high-frequency estimator of future prices given higher order information of imbalances in the orderbook. The model takes into account a current microprice estimate given the spread and best bid to ask imbalance, and adjusts the microprice based on recent dynamics of higher price rank imbalances. We introduce a computationally fast estimator using a recently proposed hyperdimensional vector Tsetlin machine framework and demonstrate empirically that this estimator can provide a robust estimate of future prices in the orderbook.
format Preprint
id arxiv_https___arxiv_org_abs_2411_13594
institution arXiv
publishDate 2024
record_format arxiv
spellingShingle High resolution microprice estimates from limit orderbook data using hyperdimensional vector Tsetlin Machines
Blakely, Christian D.
Trading and Market Microstructure
Machine Learning
Statistical Finance
We propose an error-correcting model for the microprice, a high-frequency estimator of future prices given higher order information of imbalances in the orderbook. The model takes into account a current microprice estimate given the spread and best bid to ask imbalance, and adjusts the microprice based on recent dynamics of higher price rank imbalances. We introduce a computationally fast estimator using a recently proposed hyperdimensional vector Tsetlin machine framework and demonstrate empirically that this estimator can provide a robust estimate of future prices in the orderbook.
title High resolution microprice estimates from limit orderbook data using hyperdimensional vector Tsetlin Machines
topic Trading and Market Microstructure
Machine Learning
Statistical Finance
url https://arxiv.org/abs/2411.13594