Chapter 9: Model-Based Feature Extraction

Path Signatures and Log-Signatures for Financial Sequences advanced

Two windows can end at the same price with similar volatility and still trace different paths; signatures are one way to encode that ordered shape.

Two windows can end at the same price with similar volatility and still trace different paths; signatures are one way to encode that ordered shape.

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References

Trading Costs and Returns for U.S. Equities: Estimating Effective Costs from Daily Data
Joel Hasbrouck (2009) — The Journal of Finance
Generating Financial Markets With Signatures
Hans Buehler, Blanka Horvath, Terry Lyons, Imanol Perez Arribas, Ben Wood (2020)
A Primer on the Signature Method in Machine Learning
Ilya Chevyrev, Andrey Kormilitzin, Christian Bayer, Goncalo dos Reis, Blanka Horvath, Harald Oberhauser (2026) — Springer Nature Switzerland