Application Multiarmed Bandit Algorithm in stock in the

Stock and Bandit Machine looks a far cry from, but in fact by limiting the buying and selling behavior, stock can be converted to Bandit Machine, such as: provision must sell the stock after buying day. Why should the stock be struggling to become Bandit Machine it? Because there are so many Multiarmed Bandit algorithm can be applied to the stock market, for example, a small amount of greedy algorithm, Softmax algorithm and UCB algorithm.

In order to apply these algorithms, we need each stock will be seen as a Bandit Machine, this is equivalent to many Bandit Machine before us, we are faced with is a Multiarmed Bandit Machine problems. Here's to UCB algorithm as an example.

According to UCB algorithm, we write the following formula:

 

C is a proportionality coefficient, theoretically equal . Every day we first day before the stock is sold, then we take the maximum value of the selected type i were to buy the stock.

Note: Why should I write Bandit Machine, because Chinese keywords are shielded.

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Origin www.cnblogs.com/JebediahKerman/p/Application_of_Multiarmed_Bandit_Algorithm_in_Stocks.html