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by troika
935 days ago
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Early in my career, I wrote sales funnel optimization algorithms for online-shops and travel websites. We've used an evolutionary algorithm approach - basically, a number of algos implementing competing strategies and aspects that could mutate, crossover, reproduce and die. We ran this over two years and saw impressive results - especially for the time. I feel, this very much was a "thinking system" in the same sense. And I concur - there are many architectures and approaches to built this sort of thing. |
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Basically, you create a "population" out of possible placement strategies for orders. You then cycle through "generations" that quickly adapt to the changing market conditions.
Ultimately, you end up with something that - on average - provides execution closer to the target price than traditional, more static strategies. But the problem for us was that the outliers where really far out. Basically, if it got it wrong, it got it really wrong and you were often stuck with a set of half executed orders that had to be cleaned up manually.