Synthetic Markets: Using Generative AI to Stress-Test Trading Strategies

"Synthetic Markets: Using Generative AI to Stress-Test Trading Strategies"

Synthetic Markets: Using Generative AI to Stress-Test Trading Strategies is a practical, research-grade guide for quants, traders, risk managers, and data scientists who want to rigorously probe the limits of their strategies before real capital is at risk. Blending modern machine learning with market microstructure and risk management, it shows how to turn generative AI into a controlled laboratory for adversarial market scenarios, liquidity shocks, and regime shifts.

The book builds from quantitative foundations and market structure through generative-model design, synthetic simulation, and stress-testing methodologies. Readers learn how to construct realistic scenario generators that respect stylized facts and no-arbitrage constraints; integrate GANs, VAEs, diffusion models, and sequence models with agent-based and limit-order-book simulators; and align synthetic paths with backtesting, risk measures, and portfolio construction. Emphasis is placed on evaluation, governance, and MLOps so that synthetic markets can be deployed safely in institutional settings.

Designed as a self-contained reference, the text assumes comfort with basic probability, statistics, and Python but reintroduces key tools from time-series analysis, optimization, and deep learning as needed. Worked examples, reproducible pipelines, and case studies on equity LOB strategies and options portfolios distinguish this book as a complete blueprint for using generative AI to make trading systems more resilient, explainable, and ro

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E-bog: 11. december 2025