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Robust reinforcement learning (RRL) aims at seeking a robust policy to optimize the worst case performance over an uncertainty set of Markov decision processes (MDPs). This set contains some perturbed MDPs from a nominal MDP (N-MDP) that…

Machine Learning · Computer Science 2023-11-21 Ukjo Hwang , Songnam Hong

Over the past decade, remarkable progress has been made in adopting deep neural networks to enhance the performance of conventional reinforcement learning. A notable milestone was the development of Deep Q-Networks (DQN), which achieved…

Systems and Control · Electrical Eng. & Systems 2025-07-14 Klinsmann Agyei , Pouria Sarhadi , Daniel Polani

Optimal order execution is widely studied by industry practitioners and academic researchers because it determines the profitability of investment decisions and high-level trading strategies, particularly those involving large volumes of…

Trading and Market Microstructure · Quantitative Finance 2020-09-15 Michaël Karpe , Jin Fang , Zhongyao Ma , Chen Wang

Learning how to act when there are many available actions in each state is a challenging task for Reinforcement Learning (RL) agents, especially when many of the actions are redundant or irrelevant. In such cases, it is sometimes easier to…

Machine Learning · Computer Science 2019-02-26 Tom Zahavy , Matan Haroush , Nadav Merlis , Daniel J. Mankowitz , Shie Mannor

Reinforcement learning is concerned with identifying reward-maximizing behaviour policies in environments that are initially unknown. State-of-the-art reinforcement learning approaches, such as deep Q-networks, are model-free and learn to…

Artificial Intelligence · Computer Science 2017-08-18 Felix Leibfried , Nate Kushman , Katja Hofmann

We derive an optimal strategy in the popular Deal or No Deal game show. Q-learning quantifies the continuation value inherent in sequential decision making and we use this to analyze contestants risky choices. Given their choices and…

Applications · Statistics 2011-10-06 Laszlo Korsos , Nicholas G. Polson

Deep Reinforcement Learning (DRL) algorithms can scale to previously intractable problems. The automation of profit generation in the stock market is possible using DRL, by combining the financial assets price "prediction" step and the…

Trading and Market Microstructure · Quantitative Finance 2022-09-20 Taylan Kabbani , Ekrem Duman

In this work, the trick-taking game Wizard with a separate bidding and playing phase is modeled by two interleaved partially observable Markov decision processes (POMDP). Deep Q-Networks (DQN) are used to empower self-improving agents,…

Machine Learning · Computer Science 2022-05-30 Jonas Schumacher , Marco Pleines

We propose a reinforcement learning (RL) approach to model optimal exercise strategies for option-type products. We pursue the RL avenue in order to learn the optimal action-value function of the underlying stopping problem. In addition to…

Pricing of Securities · Quantitative Finance 2024-06-27 John Ery , Loris Michel

We present a novel negotiation model that allows an agent to learn how to negotiate during concurrent bilateral negotiations in unknown and dynamic e-markets. The agent uses an actor-critic architecture with model-free reinforcement…

Multiagent Systems · Computer Science 2020-02-04 Pallavi Bagga , Nicola Paoletti , Bedour Alrayes , Kostas Stathis

This paper presents a comprehensive study on stock price prediction, leveragingadvanced machine learning (ML) and deep learning (DL) techniques to improve financial forecasting accuracy. The research evaluates the performance of various…

Statistical Finance · Quantitative Finance 2025-02-25 Daksh Dave , Gauransh Sawhney , Vikhyat Chauhan

Deep Q-learning Network (DQN) is a successful way which combines reinforcement learning with deep neural networks and leads to a widespread application of reinforcement learning. One challenging problem when applying DQN or other…

Machine Learning · Computer Science 2022-09-19 Zhe Zhang , Yukun Zou , Junjie Lai , Qing Xu

Liquidation is the process of selling a large number of shares of one stock sequentially within a given time frame, taking into consideration the costs arising from market impact and a trader's risk aversion. The main challenge in…

Trading and Market Microstructure · Quantitative Finance 2019-06-27 Wenhang Bao , Xiao-yang Liu

Reinforcement learning has been increasingly applied in monitoring applications because of its ability to learn from previous experiences and can make adaptive decisions. However, existing machine learning-based health monitoring…

Machine Learning · Computer Science 2024-10-28 Thanveer Shaik , Xiaohui Tao , Lin Li , Haoran Xie , U R Acharya , Raj Gururajan , Xujuan Zhou

Recent research has shown that although Reinforcement Learning (RL) can benefit from expert demonstration, it usually takes considerable efforts to obtain enough demonstration. The efforts prevent training decent RL agents with expert…

Machine Learning · Computer Science 2021-07-09 Si-An Chen , Voot Tangkaratt , Hsuan-Tien Lin , Masashi Sugiyama

We propose using deep reinforcement learning to solve dynamic stochastic general equilibrium models. Agents are represented by deep artificial neural networks and learn to solve their dynamic optimisation problem by interacting with the…

Econometrics · Economics 2023-01-06 Mingli Chen , Andreas Joseph , Michael Kumhof , Xinlei Pan , Xuan Zhou

Reinforcement learning agents in complex game environments often suffer from sparse rewards, training instability, and poor sample efficiency. This paper presents a hybrid training approach that combines offline imitation learning with…

Machine Learning · Computer Science 2025-09-19 Thomas Ackermann , Moritz Spang , Hamza A. A. Gardi

Real-world reinforcement learning tasks often involve some form of partial observability where the observations only give a partial or noisy view of the true state of the world. Such tasks typically require some form of memory, where the…

Machine Learning · Computer Science 2022-11-11 Kevin Esslinger , Robert Platt , Christopher Amato

Reinforcement learning (RL) -- algorithms that teach artificial agents to interact with environments by maximising reward signals -- has achieved significant success in recent years. These successes have been facilitated by advances in…

Machine Learning · Computer Science 2025-04-03 Llewyn Salt , Marcus Gallagher

Deep neural networks (DNN) can approximate value functions or policies for reinforcement learning, which makes the reinforcement learning algorithms more powerful. However, some DNNs, such as convolutional neural networks (CNN), cannot…

Machine Learning · Computer Science 2022-04-26 Yizhan Niu , Jinglong Liu , Yuhao Shi , Jiren Zhu