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CM30076 / CM30082
Individual Project

Project Ideas

Management School

Andreas Krause: email mnsak at bath.ac.uk

Distributed Answer Set Solving
It has been shown that the trading rules of markets have a significant effect on the prices and allocation of assets. In order to find the optimal trading rules recent work has used zero-intelligence (ZI) traders - effectively traders making random decisions to buy and sell - successfully. The idea is to develop a model of such ZI-traders based on the existing literature and then investigate the impact a number of trading rules have on the outcome, e.g. the tick size, priority rules or the existence of market makers. Using an objective function the aim of the dissertation would be to apply a genetic algorithm to optimize the trading rules, preferably using MATLAB. For more detailed information please feel free to contact me on mnsak at bath.ac.uk