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Quantum Machine Learning and Optimisation in Finance

Quantum Machine Learning and Optimisation in Finance - Second Edition

By : Jacquier Antoine, Alexei Kondratyev
4.1 (7)
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Quantum Machine Learning and Optimisation in Finance

Quantum Machine Learning and Optimisation in Finance

4.1 (7)
By: Jacquier Antoine, Alexei Kondratyev

Overview of this book

As quantum machine learning (QML) continues to evolve, many professionals struggle to apply its powerful algorithms to real-world problems using noisy intermediate-scale quantum (NISQ) hardware. This book bridges that gap by focusing on hands-on QML applications tailored to NISQ systems, moving beyond the traditional textbook approaches that explore standard algorithms like Shor's and Grover's, which lie beyond current NISQ capabilities. You’ll get to grips with major QML algorithms that have been widely studied for their transformative potential in finance and learn hybrid quantum-classical computational protocols, the most effective way to leverage quantum and classical computing systems together. The authors, Antoine Jacquier, a distinguished researcher in quantum computing and stochastic analysis, and Oleksiy Kondratyev, a Quant of the Year awardee with over 20 years in quantitative finance, offer a hardware-agnostic perspective. They present a balanced view of both analog and digital quantum computers, delving into the fundamental characteristics of the algorithms while highlighting the practical limitations of today’s quantum hardware. By the end of this quantum book, you’ll have a deeper understanding of the significance of quantum computing in finance and the skills needed to apply QML to solve complex challenges, driving innovation in your work.
Table of Contents (21 chapters)
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2
Part I Analog Quantum Computing – Quantum Annealing
7
Part II Gate Model Quantum Computing
18
Bibliography

Chapter 11
Quantum Approximate Optimisation Algorithm

As the name suggests, the Quantum Approximate Optimisation Algorithm (QAOA) is an optimisation algorithm. It is motivated by and draws upon two optimisation algorithms considered in previous chapters: AQC and VQE. From AQC it borrows the concept of solving an optimisation problem through encoding the corresponding objective function in the problem Hamiltonian and then evolving the system in such a way that the ground state of the final Hamiltonian provides the solution we are after (in a bitstring format). From VQE it borrows the variational principle applied to the parameterised quantum circuit. Roughly speaking, QAOA is a gate-model version of an optimisation solver that otherwise could have been tackled with an analog AQC approach. We can also look at QAOA as a special case of VQE with the constraints on the form of the Hamiltonian.

QAOA was introduced in the pioneering work by Farhi, Goldstone, and Gutmann [96] in 2014...

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