EDDIE beats the bookies
Created by W.Langdon from
gp-bibliography.bib Revision:1.7970
- @Article{tsang:1998:eddie,
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author = "Edward P. K. Tsang and Jin Li and James M. Butler",
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title = "{EDDIE} beats the bookies",
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journal = "Software: Practice and Experience",
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year = "1998",
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volume = "28",
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number = "10",
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pages = "1033--1043",
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keywords = "genetic algorithms, genetic programming, finance,
forecasting, horse racing, investment",
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ISSN = "0038-0644",
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URL = "http://cswww.essex.ac.uk/CSP/finance/papers/TsBuLi-Eddie-Software98.pdf",
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URL = "https://onlinelibrary.wiley.com/doi/abs/10.1002/(SICI)1097-024X(199808)28:10%3C1033::AID-SPE198%3E3.0.CO%3B2-1",
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DOI = "doi:10.1002/(SICI)1097-024X(199808)28:10%3C1033::AID-SPE198%3E3.0.CO%3B2-1",
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size = "15 pages",
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abstract = "Investment involves the maximisation of return on ones
investment whilst minimising risk. Good forecasting,
which often requires expert knowledge, can help to
reduce risk. In this paper, we propose a genetic
programming-based system, EDDIE (Evolutionary Dynamic
Data Investment Evaluator), as a forecasting tool.
Genetic programming is inspired by evolution theory,
and has been demonstrated to be successful in other
areas. EDDIE interacts with the users and generates
decision trees, which can also be seen as rule sets. We
argue that EDDIE is suitable for forecasting because
apart from using the power of genetic programming to
efficiently search the space of decision trees, it
allows expert knowledge to be channelled into
forecasting, and it generates rules which can easily be
understood and verified. EDDIE has been applied to
horse racing and achieved outstanding results. When
experimented on 180 handicap races (real data) in the
UK, it out-performed other common strategies used in
horse race betting by great margins. The idea was then
extended to financial forecasting. When tested on
historical S&P-500 data EDDIE achieved a respectable
annual rate of return over a three and a half year
period. While luck may play a part in the success of
EDDIE, our experimental results do indicate that EDDIE
is a tool which deserves more research. c 1998 John
Wiley & Sons, Ltd.",
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notes = "See also \cite{butler:1995:eddie}",
- }
Genetic Programming entries for
Edward P K Tsang
Jin Li
James M Butler
Citations