Applied Causal AI for Algorithmic Trading and Quantitative Strategy Design - Couverture souple

Thatch, Oliver J.

Couverture souple

ISBN 13 : 9798178409459

Editeur : Independently published, 2026

Synopsis

Reactive Publishing

Overcome the limit of traditional machine learning in financial markets by moving from pattern recognition to true cause-and-effect modeling.

Standard statistical and machine learning models excel at detecting correlations in historical market data. However, when market regimes shift, correlation-based strategies frequently break down, leading to catastrophic overfitting and severe drawdown. Applied Causal AI for Algorithmic Trading and Quantitative Strategy Design introduces a rigorous framework for building trading algorithms grounded in structural causal models (SCMs).

By modeling the structural mechanics driving price action rather than relying on surface-level correlations, quantitative researchers and algorithmic traders can build strategies that remain resilient across changing market conditions.

Inside this book, you will discover:

• Foundations of Causal Inference in Finance: Understand directed acyclic graphs (DAGs), structural causal models, and do-calculus applied specifically to high-frequency and daily market data.

• Refining Feature Engineering: Identify true causal drivers of asset returns while eliminating spurious correlations and confounders that lead to backtest overfitting.

• Counterfactual Backtesting: Test trading strategies against alternative market scenarios and stress-tests using structural interventions rather than simple historical replay.

• Regime Shift Resilience: Build adaptive risk management and position-sizing algorithms designed to detect and adjust to structural breaks in real time.

• Practical Implementation: Implement end-to-end Python workflows integrating causal discovery algorithms with standard quantitative finance libraries.

Whether you are a quantitative portfolio manager, financial engineer, or independent systematic trader, this guide provides the theoretical foundations and practical tools required to deploy robust, cause-driven algorithmic trading strategies.

Détails de l'édition

• Éditeur: Independently published
• Date d'édition: 2026
• Langue: anglais
• ISBN 13: 9798178409459
• Reliure: Copertina flessibile
• Nombre de pages: 391
• Éditeur: Schwartz Alice
• Coordonnées du fabricant: Printed by Amazon on behalf of the author; https://www.amazon.it/hz/contact-us; ; c/o Amazon Media EU S.à.r.l., 38 Avenue John F. Kennedy; Luxembourg; L-1855; Luxembourg