Bio-inspired Machine Learning for Distributed Confidential Multi-Portfolio Selection Problem

The recently emerging multi-portfolio selection problem lacks a proper framework to ensure that client privacy and database secrecy remain intact. Since privacy is of major concern these days, in this paper, we propose a variant of Beetle Antennae Search (BAS) known as Distributed Beetle Antennae Search (DBAS) to optimize multi-portfolio selection problems without violating the privacy of individual portfolios. DBAS is a swarm-based optimization algorithm that solely shares the gradients of portfolios among the swarm without sharing private data or portfolio stock information. DBAS is a hybrid framework, and it inherits the swarm-like nature of the Particle Swarm Optimization (PSO) algorithm with the BAS updating criteria. It ensures a robust and fast optimization of the multi-portfolio selection problem whilst keeping the privacy and secrecy of each portfolio intact. Since multi-portfolio selection problems are a recent direction for the field, no work has been done concerning the privacy of the database nor the privacy of stock information of individual portfolios. To test the robustness of DBAS, simulations were conducted consisting of four categories of multi-portfolio problems, where in each category, three portfolios were selected. To achieve this, 200 days worth of real-world stock data were utilized from 25 NASDAQ stock companies. The simulation results prove that DBAS not only ensures portfolio privacy but is also efficient and robust in selecting optimal portfolios

Eagle perching optimizer for the online solution of constrained optimization

The paper proposes a novel nature-inspired optimization technique called Eagle Perching Optimizer (EPO). It is an addition to the family of swarm-based meta-heuristic algorithms. It mimics eagles’ perching nature to find prey (food). The EPO is based on the exploration and exploitation of an eagle when it descends from the height such that it formulates its trajectory in a way to get to the optimal solution (prey). The algorithm takes bigger chunks of search space and looks for the optimal solution. The optimal solution in that chunk becomes the search space for the next iteration, and this process is continuous until EPO converges to the optimal global solution. We performed the theoretical analysis of EPO, which shows that it converges to the optimal solution. The simulation includes three sets of problems, i.e., uni-model, multi-model, and constrained real-world problems. We employed EPO on the benchmark problems and compared the results with state-of-the-art meta-heuristic algorithms. For the real-world problems, we used a cantilever beam, three-bar truss, and gear train problems to test the robustness of EPO and later made the comparison. The comparison shows that EPO is comparable with other known meta-heuristic algorithms

Fraud detection in publicly traded U.S firms using Beetle Antennae Search: A machine learning approach

In this paper, we present a fraud detection framework for publicly traded firms using an optimization approach integrated with a meta-heuristic algorithm known as Beetle Antennae Search (BAS). Existing techniques include human resources, like financial experts and audit teams, to determine the ambiguities or financial frauds in the companies based on financial and non-financial ratios. It is a laborious task, time-consuming, and prone to errors. We designed an optimization problem to minimize the loss function based on a non-linear decision function combined with the maximization of recall (Sensitivity and Specificity). We solved the optimization problem iteratively using the BAS. It is a nature-inspired algorithm and mimics the beetle's food-searching nature. It includes a single searching particle to find an optimal solution to the optimization problem in n dimensional space. We used a benchmark dataset collected from SEC's Accounting and Auditing Enforcement Releases (AAERs) for the simulation. It includes 28 raw financial variables and the data collected between 1991-2008. For the comparison, we evaluated the performance of BAS with the recently proposed approach using RUSBoost. We also compared it with some additional algorithms, i.e., Logit and SVM-FK. The results showed that BAS is comparable with these algorithms and outperformed them in time consumption

Hybrid Sine Cosine Algorithm for Solving Engineering Optimization Problems

Engineering design optimization problems are difficult to solve because the objective function is often complex, with a mix of continuous and discrete design variables and various design constraints. Our research presents a novel hybrid algorithm that integrates the benefits of the sine cosine algorithm (SCA) and artificial bee colony (ABC) to address engineering design optimization problems. The SCA is a recently developed metaheuristic algorithm with many advantages, such as good search ability and reasonable execution time, but it may suffer from premature convergence. The enhanced SCA search equation is proposed to avoid this drawback and reach a preferable balance between exploitation and exploration abilities. In the proposed hybrid method, named HSCA, the SCA with improved search strategy and the ABC algorithm with two distinct search equations are run alternately during working on the same population. The ABC with multiple search equations can provide proper diversity in the population so that both algorithms complement each other to create beneficial cooperation from their merger. Certain feasibility rules are incorporated in the HSCA to steer the search towards feasible areas of the search space. The HSCA is applied to fifteen demanding engineering design problems to investigate its performance. The presented experimental results indicate that the developed method performs better than the basic SCA and ABC. The HSCA accomplishes pretty competitive results compared to other recent state-of-the-art methods