TRLGJun 19, 2023

Optimal Execution Using Reinforcement Learning

arXiv:2306.17178v11 citationsh-index: 3
Originality Incremental advance
AI Analysis

This work addresses optimal execution for cryptocurrency traders by introducing cross-exchange data, but it is incremental as it builds on existing reinforcement learning methods.

The paper tackled optimal order execution in cryptocurrency markets by using cross-exchange signals for the first time, showing that these signals provide additional information to facilitate the process.

This work is about optimal order execution, where a large order is split into several small orders to maximize the implementation shortfall. Based on the diversity of cryptocurrency exchanges, we attempt to extract cross-exchange signals by aligning data from multiple exchanges for the first time. Unlike most previous studies that focused on using single-exchange information, we discuss the impact of cross-exchange signals on the agent's decision-making in the optimal execution problem. Experimental results show that cross-exchange signals can provide additional information for the optimal execution of cryptocurrency to facilitate the optimal execution process.

Foundations

The foundational work for this paper's niche, ranked by how specifically the neighbourhood builds on it — not by global fame.

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