Genetic Algorithms and Genetic Programming in Computational Finance: An Overview of the Book

This chapter reviews some recent advancements in financial applications of genetic algorithms and genetic programming. We start with the more familiar applications, such as forecasting, trading, and portfolio management. We then trace the recent extensions to cash flow management, option pricing, volatility forecasting, and arbitrage. The direction then turns to agent-based computational finance, a bottom-up approach to the study of financial markets. The review also sheds light on a few technical aspects of GAs and GP, which may play a vital role in financial applications.