Trading Signal

Trading signals, indicators suggesting potential investment opportunities, are a central focus in financial research, aiming to improve prediction accuracy and optimize trading strategies. Current research heavily utilizes deep learning, including reinforcement learning algorithms (like A2C, PPO, and DDPG) and transformer-based models, to analyze diverse data sources such as limit order books, earnings conference calls (leveraging LLMs for information extraction), and even incorporating microstructural characteristics of stocks. These advancements aim to enhance the reliability and profitability of trading signals, impacting both academic understanding of market dynamics and practical applications in algorithmic trading and portfolio management.

Papers