Comprehensive bidding strategies with genetic programming/finitestate automata |
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Authors: | Richter CW Jr Sheble GB Ashlock D |
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Affiliation: | Dept. of Electr. Eng. & Comput. Eng., Iowa State Univ., Ames, IA; |
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Abstract: | This research is an extension of the authors' previous work in double auctions aimed at developing bidding strategies for electric utilities which trade electricity competitively. The improvements detailed in this paper come from using data structures which combine genetic programming and finite state automata termed GP-Automata. The strategies developed by the method described here are adaptive-reacting to inputs-whereas the previously developed strategies were only suitable in the particular scenario for which they had been designed. The strategies encoded in the GP-Automata are tested in an auction simulator. The simulator pits them against other distribution companies (distcos) and generation companies (gencos), buying and selling power via double auctions implemented in regional commodity exchanges. The GP-Automata are evolved with a genetic algorithm so that they possess certain characteristics. In addition to designing successful bidding strategies (whose usage would result in higher profits) the resulting strategies can also be designed to imitate certain types of trading behaviors. The resulting strategies can be implemented directly in online trading, or can be used as realistic competitors in an off-line trading simulator |
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