English

A Framework for Empowering Reinforcement Learning Agents with Causal Analysis: Enhancing Automated Cryptocurrency Trading

Artificial Intelligence 2024-08-21 v2 Machine Learning

Abstract

Despite advances in artificial intelligence-enhanced trading methods, developing a profitable automated trading system remains challenging in the rapidly evolving cryptocurrency market. This research focuses on developing a reinforcement learning (RL) framework to tackle the complexities of trading five prominent altcoins: Binance Coin, Ethereum, Litecoin, Ripple, and Tether. To this end, we present the CausalReinforceNet~(CRN) framework, which integrates both Bayesian and dynamic Bayesian network techniques to empower the RL agent in trade decision-making. We develop two agents using the framework based on distinct RL algorithms to analyse performance compared to the Buy-and-Hold benchmark strategy and a baseline RL model. The results indicate that our framework surpasses both models in profitability, highlighting CRN's consistent superiority, although the level of effectiveness varies across different cryptocurrencies.

Keywords

Cite

@article{arxiv.2310.09462,
  title  = {A Framework for Empowering Reinforcement Learning Agents with Causal Analysis: Enhancing Automated Cryptocurrency Trading},
  author = {Rasoul Amirzadeh and Dhananjay Thiruvady and Asef Nazari and Mong Shan Ee},
  journal= {arXiv preprint arXiv:2310.09462},
  year   = {2024}
}
R2 v1 2026-06-28T12:50:28.813Z