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Related papers: Hedge algorithm and Dual Averaging schemes

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In this paper, we study the behavior of the Hedge algorithm in the online stochastic setting. We prove that anytime Hedge with decreasing learning rate, which is one of the simplest algorithm for the problem of prediction with expert…

Machine Learning · Statistics 2019-07-10 Jaouad Mourtada , Stéphane Gaïffas

Most methods for decision-theoretic online learning are based on the Hedge algorithm, which takes a parameter called the learning rate. In most previous analyses the learning rate was carefully tuned to obtain optimal worst-case…

Machine Learning · Statistics 2015-03-04 Tim van Erven , Peter Grünwald , Wouter M. Koolen , Steven de Rooij

Recent advances in machine learning make it possible to design efficient prediction algorithms for data sets with huge numbers of parameters. This paper describes a new technique for "hedging" the predictions output by many such algorithms,…

Machine Learning · Computer Science 2011-11-22 Alexander Gammerman , Vladimir Vovk

This paper begins with a study on the dual representations of risk and regret measures and their impact on modeling multistage decision making under uncertainty. A relationship between risk envelopes and regret envelopes is established by…

Mathematical Finance · Quantitative Finance 2020-06-16 Jie Sun , Xinmin Yang , Qiang Yao , Min Zhang

In this paper, a new reversible data hiding (RDH) algorithm that is based on the concept of shifting of prediction error histograms is proposed. The algorithm extends the efficient modification of prediction errors (MPE) algorithm by…

Multimedia · Computer Science 2016-05-10 Enas N. Jaara , Iyad F. Jafar

We present a new online learning algorithm for cumulative discounted gain. This learning algorithm does not use exponential weights on the experts. Instead, it uses a weighting scheme that depends on the regret of the master algorithm…

Computer Science and Game Theory · Computer Science 2008-07-01 Yoav Freund , Daniel Hsu

In this article, we introduce an algorithm called Backward Hedging, designed for hedging European and American options while considering transaction costs. The optimal strategy is determined by minimizing an appropriate loss function, which…

Computational Finance · Quantitative Finance 2023-06-26 Ludovic Goudenège , Andrea Molent , Antonino Zanette

We study neural networks as nonparametric estimation tools for the hedging of options. To this end, we design a network, named HedgeNet, that directly outputs a hedging strategy. This network is trained to minimise the hedging error instead…

Risk Management · Quantitative Finance 2021-06-15 Johannes Ruf , Weiguan Wang

Progressive Hedging is a popular decomposition algorithm for solving multi-stage stochastic optimization problems. A computational bottleneck of this algorithm is that all scenario subproblems have to be solved at each iteration. In this…

Distributed, Parallel, and Cluster Computing · Computer Science 2020-09-28 Gilles Bareilles , Yassine Laguel , Dmitry Grishchenko , Franck Iutzeler , Jérôme Malick

Playing repeated matrix games (RMG) while maximizing the cumulative returns is a basic method to evaluate multi-agent learning (MAL) algorithms. Previous work has shown that $UCB$, $M3$, $S$ or $Exp3$ algorithms have good behaviours on…

Machine Learning · Computer Science 2018-11-02 Bruno Bouzy , Marc Métivier , Damien Pellier

We develop the setting of sequential prediction based on shifting experts and on a "smooth" version of the method of specialized experts. To aggregate experts predictions, we use the AdaHedge algorithm, which is a version of the Hedge…

Machine Learning · Computer Science 2020-01-24 Vladimir V'yugin , Vladimir Trunov

In online learning an algorithm plays against an environment with losses possibly picked by an adversary at each round. The generality of this framework includes problems that are not adversarial, for example offline optimization, or saddle…

Machine Learning · Computer Science 2021-02-04 Ryan D'Orazio , Ruitong Huang

Finding the hedge ratios for a portfolio and risk compression is the same mathematical problem. Traditionally, regression is used for this purpose. However, regression has its own limitations. For example, in a regression model, we can't…

Portfolio Management · Quantitative Finance 2023-05-09 Ali Shirazi , Fereshteh Sadeghi Naieni Fard

We present a framework for hedging a portfolio of derivatives in the presence of market frictions such as transaction costs, market impact, liquidity constraints or risk limits using modern deep reinforcement machine learning methods. We…

Computational Finance · Quantitative Finance 2018-02-12 Hans Bühler , Lukas Gonon , Josef Teichmann , Ben Wood

We consider the setting where players run the Hedge algorithm or its optimistic variant to play an $n$-action game repeatedly for $T$ rounds. 1) For two-player games, we show that the regret of optimistic Hedge decays at $\tilde{O}( 1/T…

Computer Science and Game Theory · Computer Science 2020-10-21 Xi Chen , Binghui Peng

Hedge has been proposed as an adaptive scheme, which guides an agent's decision in resource selection and distribution problems that can be modeled as a multi-armed bandit full information game. Such problems are encountered in the areas of…

Machine Learning · Computer Science 2018-12-10 Miltiades E. Anagnostou , Maria A. Lambrou

Whereas cognitive models of learning often assume direct experience with both the features of an event and with a true label or outcome, much of everyday learning arises from hearing the opinions of others, without direct access to either…

Artificial Intelligence · Computer Science 2025-12-05 Yun-Shiuan Chuang , Jerry Zhu , Timothy T. Rogers

The article is devoted to investigating the application of hedging strategies to online expert weight allocation under delayed feedback. As the main result, we develop the General Hedging algorithm $\mathcal{G}$ based on the exponential…

Machine Learning · Computer Science 2019-06-25 Alexander Korotin , Vladimir V'yugin , Evgeny Burnaev

A paradigmatic algorithm for online learning is the Hedge algorithm by Freund and Schapire. An allocation into different strategies is chosen for multiple rounds and each round incurs corresponding losses for each strategy. The algorithm…

Quantum Physics · Physics 2021-02-03 Patrick Rebentrost , Yassine Hamoudi , Maharshi Ray , Xin Wang , Siyi Yang , Miklos Santha

Momentum based stochastic gradient methods such as heavy ball (HB) and Nesterov's accelerated gradient descent (NAG) method are widely used in practice for training deep networks and other supervised learning models, as they often provide…

Machine Learning · Computer Science 2018-08-02 Rahul Kidambi , Praneeth Netrapalli , Prateek Jain , Sham M. Kakade
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