Research On The Optimal Model For Portfolio Investment Based On Hybrid Genetic Algorithm

The genetic algorithm is a kind of searching method which simulates the natural evolution. It has been used very broad fields, because genetic algorithm is simple and easy to implement, especially doesn't need the special field knowledge , and only uses fitness function as an assessment to instruct the search process. Now the genetic algorithm has got a lot of fruits in different application fields, and arose many scholars' attention.The main content of this paper is analyzing and researching the genetic algorithm and hybrid strategy, and apply it in the portfolio investment. Then, propose a reliable and efficient method to solve the multi-factor and optimal model for portfolio investment.This paper set out from application angle, establish the multi-factor and optimal model for portfolio investment in the condition of considering friction factors in market. Then lucubrate the genetic algorithm meticulously, and make some improvement to the genetic algorithm base on the practice problems. Further introduce tabu search arithmetic, build hybrid genetic algorithm in order to overcome deficient of genetic algorithm such as ahead convergence and short of climbing ability. The hybrid strategy efficaciously combine the ability that parallel search in wide range of genetic algorithm and part search of tabu search arithmetic. The most excellence of this method is satisfied of convergence conditions. Then put this hybrid strategy to solve the multi-factor and optimal model for portfolio investment, propose a method to solve this kind of problem. Last thought practical numerical calculation, get a nicer purpose, proving the validity and feasibility of this hybrid strategy.