Genetic Algorithm Optimisation for Finance and Investment
This paper provides an introduction to the use of genetic algo- rithms for financial optimisation. The aim is to give the reader a basic understanding of the computational aspects of these algorithms and how they can be applied to decision making in finance and investment. Genetic algorithms are especially suitable for complex problems char- actised by large solution spaces, multiple optima, non differentiability of the objective function, and other irregular features. The mechanics of constructing and using a genetic algorithm for optimisation are illustrated through a simple example.
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