Trading Under Uncertainty: A Distribution-Based Strategy for Futures Markets Using FutureQuant Transformer

Fuente: arXiv
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Auteurs principaux: Guo, Wenhao, Wang, Yuda, Huang, Zeqiao, Zhang, Changjiang, ma, Shumin
Format: Preprint
Publié: 2025
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author Guo, Wenhao
Wang, Yuda
Huang, Zeqiao
Zhang, Changjiang
ma, Shumin
author_facet Guo, Wenhao
Wang, Yuda
Huang, Zeqiao
Zhang, Changjiang
ma, Shumin
contents In the complex landscape of traditional futures trading, where vast data and variables like real-time Limit Order Books (LOB) complicate price predictions, we introduce the FutureQuant Transformer model, leveraging attention mechanisms to navigate these challenges. Unlike conventional models focused on point predictions, the FutureQuant model excels in forecasting the range and volatility of future prices, thus offering richer insights for trading strategies. Its ability to parse and learn from intricate market patterns allows for enhanced decision-making, significantly improving risk management and achieving a notable average gain of 0.1193% per 30-minute trade over state-of-the-art models with a simple algorithm using factors such as RSI, ATR, and Bollinger Bands. This innovation marks a substantial leap forward in predictive analytics within the volatile domain of futures trading.
format Preprint
id arxiv_https___arxiv_org_abs_2505_05595
institution arXiv
publishDate 2025
record_format arxiv
spellingShingle Trading Under Uncertainty: A Distribution-Based Strategy for Futures Markets Using FutureQuant Transformer
Guo, Wenhao
Wang, Yuda
Huang, Zeqiao
Zhang, Changjiang
ma, Shumin
Trading and Market Microstructure
Artificial Intelligence
Computational Engineering, Finance, and Science
Machine Learning
In the complex landscape of traditional futures trading, where vast data and variables like real-time Limit Order Books (LOB) complicate price predictions, we introduce the FutureQuant Transformer model, leveraging attention mechanisms to navigate these challenges. Unlike conventional models focused on point predictions, the FutureQuant model excels in forecasting the range and volatility of future prices, thus offering richer insights for trading strategies. Its ability to parse and learn from intricate market patterns allows for enhanced decision-making, significantly improving risk management and achieving a notable average gain of 0.1193% per 30-minute trade over state-of-the-art models with a simple algorithm using factors such as RSI, ATR, and Bollinger Bands. This innovation marks a substantial leap forward in predictive analytics within the volatile domain of futures trading.
title Trading Under Uncertainty: A Distribution-Based Strategy for Futures Markets Using FutureQuant Transformer
topic Trading and Market Microstructure
Artificial Intelligence
Computational Engineering, Finance, and Science
Machine Learning
url https://arxiv.org/abs/2505.05595