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In the dynamic and uncertain environments where reinforcement learning (RL) operates, risk management becomes a crucial factor in ensuring reliable decision-making. Traditional RL approaches, while effective in reward optimization, often…

Machine Learning · Computer Science 2023-09-13 Ali Baheri

Optimal execution is a sequential decision-making problem for cost-saving in algorithmic trading. Studies have found that reinforcement learning (RL) can help decide the order-splitting sizes. However, a problem remains unsolved: how to…

Trading and Market Microstructure · Quantitative Finance 2022-07-25 Feiyang Pan , Tongzhe Zhang , Ling Luo , Jia He , Shuoling Liu

We propose a reinforcement learning (RL) framework under a broad class of risk objectives, characterized by convex scoring functions. This class covers many common risk measures, such as variance, Expected Shortfall, entropic Value-at-Risk,…

Mathematical Finance · Quantitative Finance 2025-05-16 Shanyu Han , Yang Liu , Xiang Yu

Safe reinforcement learning (RL) aims to learn policies that satisfy certain constraints before deploying them to safety-critical applications. Previous primal-dual style approaches suffer from instability issues and lack optimality…

Machine Learning · Computer Science 2022-06-20 Zuxin Liu , Zhepeng Cen , Vladislav Isenbaev , Wei Liu , Zhiwei Steven Wu , Bo Li , Ding Zhao

Due to recent breakthroughs, reinforcement learning (RL) has demonstrated impressive performance in challenging sequential decision-making problems. However, an open question is how to make RL cope with partial observability which is…

Machine Learning · Computer Science 2021-04-23 Stephan Weigand , Pascal Klink , Jan Peters , Joni Pajarinen

Efficient load balancing is crucial in cloud computing environments to ensure optimal resource utilization, minimize response times, and prevent server overload. Traditional load balancing algorithms, such as round-robin or least…

Distributed, Parallel, and Cluster Computing · Computer Science 2024-09-10 Kavish Chawla

Cyber-physical systems (CPS) require the joint optimization of discrete cyber actions and continuous physical parameters under stringent safety logic constraints. However, existing hierarchical approaches often compromise global optimality,…

Machine Learning · Computer Science 2025-11-04 Guangxi Wan , Peng Zeng , Xiaoting Dong , Chunhe Song , Shijie Cui , Dong Li , Qingwei Dong , Yiyang Liu , Hongfei Bai

Reinforcement learning (RL) has emerged as an effective approach for enhancing the reasoning capabilities of large language models (LLMs), especially in scenarios where supervised fine-tuning (SFT) falls short due to limited…

Machine Learning · Computer Science 2026-04-15 Jian Xiong , Jingbo Zhou , Jingyong Ye , Qiang Huang , Dejing Dou

This paper presents Learning-based Autonomous Guidance with RObustness and Stability guarantees (LAG-ROS), which provides machine learning-based nonlinear motion planners with formal robustness and stability guarantees, by designing a…

Robotics · Computer Science 2021-10-05 Hiroyasu Tsukamoto , Soon-Jo Chung

Reinforcement Learning (RL) is essentially a trial-and-error learning procedure which may cause unsafe behavior during the exploration-and-exploitation process. This hinders the application of RL to real-world control problems, especially…

Machine Learning · Computer Science 2021-05-03 Yutong Li , Nan Li , H. Eric Tseng , Anouck Girard , Dimitar Filev , Ilya Kolmanovsky

Model-free or learning-based control, in particular, reinforcement learning (RL), is expected to be applied for complex robotic tasks. Traditional RL requires a policy to be optimized is state-dependent, that means, the policy is a kind of…

Machine Learning · Computer Science 2022-08-09 Taisuke Kobayashi , Kenta Yoshizawa

Reinforcement learning (RL)-based driver assistance systems seek to improve fuel consumption via continual improvement of powertrain control actions considering experiential data from the field. However, the need to explore diverse…

Robotics · Computer Science 2023-01-04 Habtamu Hailemichael , Beshah Ayalew , Lindsey Kerbel , Andrej Ivanco , Keith Loiselle

Balancing exploration and exploitation remains a key challenge in reinforcement learning (RL). State-of-the-art RL algorithms suffer from high sample complexity, particularly in the sparse reward case, where they can do no better than to…

Machine Learning · Computer Science 2020-01-22 Philippe Morere , Gilad Francis , Tom Blau , Fabio Ramos

Reinforcement learning (RL) is a promising approach for deriving control policies for complex systems. As we show in two control problems, the derived policies from using the Proximal Policy Optimization (PPO) and Deep Q-Network (DQN)…

Machine Learning · Computer Science 2022-04-05 Jan de Priester , Ricardo G. Sanfelice , Nathan van de Wouw

Learning from expert demonstrations to flexibly program an autonomous system with complex behaviors or to predict an agent's behavior is a powerful tool, especially in collaborative control settings. A common method to solve this problem is…

Systems and Control · Electrical Eng. & Systems 2024-05-15 Samuel Tesfazgi , Leonhard Sprandl , Armin Lederer , Sandra Hirche

Deep or reinforcement learning (RL) approaches have been adapted as reactive agents to quickly learn and respond with new investment strategies for portfolio management under the highly turbulent financial market environments in recent…

Portfolio Management · Quantitative Finance 2024-09-11 Zhenglong Li , Vincent Tam , Kwan L. Yeung

In real-world tasks, reinforcement learning (RL) agents frequently encounter situations that are not present during training time. To ensure reliable performance, the RL agents need to exhibit robustness against worst-case situations. The…

Machine Learning · Computer Science 2021-03-19 Sebastian Curi , Ilija Bogunovic , Andreas Krause

We analyze a fixed-point algorithm for reinforcement learning (RL) of optimal portfolio mean-variance preferences in the setting of multivariate generalized autoregressive conditional-heteroskedasticity (MGARCH) with a small penalty on…

Computational Finance · Quantitative Finance 2023-02-17 Andrew Papanicolaou , Hao Fu , Prashanth Krishnamurthy , Farshad Khorrami

Recent advances in reinforcement learning, such as Dynamic Sampling Policy Optimization (DAPO), show strong performance when paired with large language models (LLMs). Motivated by this success, we ask whether similar gains can be realized…

Computational Engineering, Finance, and Science · Computer Science 2025-05-27 Ruijian Zha , Bojun Liu

Dynamic hedging is a financial strategy that consists in periodically transacting one or multiple financial assets to offset the risk associated with a correlated liability. Deep Reinforcement Learning (DRL) algorithms have been used to…

Computational Finance · Quantitative Finance 2025-04-18 Andrei Neagu , Frédéric Godin , Leila Kosseim