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With the increasing power of computers and the rapid development of self-learning methodologies such as machine learning and artificial intelligence, the problem of constructing an automatic Financial Trading Systems (FTFs) becomes an…

Trading and Market Microstructure · Quantitative Finance 2019-08-29 Haoqian Li , Thomas Lau

State-of-the-art model-based reinforcement learning methods train policies on imagined rollouts. These rollouts are trajectories generated by a learned dynamics model and are scored by a learned reward model, but without querying the true…

Machine Learning · Computer Science 2026-05-13 Nadav Timor , Ravid Shwartz-Ziv , Micah Goldblum , Yann LeCun , David Harel

Index spaces serve as valuable metric models for studying properties relevant to various applications, such as social science or economics. These properties are represented by real Lipschitz functions that describe the degree of association…

Methodology · Statistics 2024-02-20 R. Arnau , J. M. Calabuig , Álvaro González , Enrique A. Sánchez Pérez

Bisimulation metric has long been regarded as an effective control-related representation learning technique in various reinforcement learning tasks. However, in this paper, we identify two main issues with the conventional bisimulation…

Machine Learning · Computer Science 2025-09-23 Leiji Zhang , Zeyu Wang , Xin Li , Yao-Hui Li

The aim of Reinforcement Learning (RL) in real-world applications is to create systems capable of making autonomous decisions by learning from their environment through trial and error. This paper emphasizes the importance of reward…

Machine Learning · Computer Science 2024-12-31 Sinan Ibrahim , Mostafa Mostafa , Ali Jnadi , Hadi Salloum , Pavel Osinenko

We present a framework for performing efficient regression in general metric spaces. Roughly speaking, our regressor predicts the value at a new point by computing a Lipschitz extension --- the smoothest function consistent with the…

Machine Learning · Computer Science 2017-04-25 Lee-Ad Gottlieb , Aryeh Kontorovich , Robert Krauthgamer

Reinforcement learning algorithms describe how an agent can learn an optimal action policy in a sequential decision process, through repeated experience. In a given environment, the agent policy provides him some running and terminal…

Theoretical Economics · Economics 2020-03-24 Arthur Charpentier , Romuald Elie , Carl Remlinger

In reinforcement learning (RL), different reward functions can define the same optimal policy but result in drastically different learning performance. For some, the agent gets stuck with a suboptimal behavior, and for others, it solves the…

Machine Learning · Computer Science 2025-02-25 Grigorii Veviurko , Wendelin Böhmer , Mathijs de Weerdt

Learned representations in deep reinforcement learning (DRL) have to extract task-relevant information from complex observations, balancing between robustness to distraction and informativeness to the policy. Such stable and rich…

Machine Learning · Computer Science 2021-10-28 Mete Kemertas , Tristan Aumentado-Armstrong

Reinforcement learning (RL) methods usually treat reward functions as black boxes. As such, these methods must extensively interact with the environment in order to discover rewards and optimal policies. In most RL applications, however,…

Machine Learning · Computer Science 2022-01-19 Rodrigo Toro Icarte , Toryn Q. Klassen , Richard Valenzano , Sheila A. McIlraith

To achieve the ambitious goals of artificial intelligence, reinforcement learning must include planning with a model of the world that is abstract in state and time. Deep learning has made progress with state abstraction, but temporal…

We propose a novel composite reward function for reinforcement learning in financial trading that balances return and risk using four differentiable terms: annualized return downside risk differential return and the Treynor ratio Unlike…

Machine Learning · Computer Science 2025-06-06 Uditansh Srivastava , Shivam Aryan , Shaurya Singh

The sequential nature of decision-making in financial asset trading aligns naturally with the reinforcement learning (RL) framework, making RL a common approach in this domain. However, the low signal-to-noise ratio in financial markets…

Machine Learning · Computer Science 2024-11-14 Sven Goluža , Tomislav Kovačević , Stjepan Begušić , Zvonko Kostanjčar

The options framework in reinforcement learning models the notion of a skill or a temporally extended sequence of actions. The discovery of a reusable set of skills has typically entailed building options, that navigate to bottleneck…

Machine Learning · Computer Science 2019-05-15 Rahul Ramesh , Manan Tomar , Balaraman Ravindran

Within Bishop-style constructive mathematics we study the classical McShane-Whitney theorem on the extendability of real-valued Lipschitz functions defined on a subset of a metric space. Using a formulation similar to the formulation of…

Logic · Mathematics 2023-06-22 Iosif Petrakis

High-dimensional observations and complex real-world dynamics present major challenges in reinforcement learning for both function approximation and exploration. We address both of these challenges with two complementary techniques: First,…

Artificial Intelligence · Computer Science 2016-03-15 David Abel , Alekh Agarwal , Fernando Diaz , Akshay Krishnamurthy , Robert E. Schapire

We introduce a new reinforcement learning approach combining a planning quasi-metric (PQM) that estimates the number of steps required to go from any state to another, with task-specific "aimers" that compute a target state to reach a given…

Machine Learning · Computer Science 2020-12-08 Vincent Micheli , Karthigan Sinnathamby , François Fleuret

Reinforcement learning provides an automated framework for learning behaviors from high-level reward specifications, but in practice the choice of reward function can be crucial for good results -- while in principle the reward only needs…

Machine Learning · Computer Science 2022-10-19 Abhishek Gupta , Aldo Pacchiano , Yuexiang Zhai , Sham M. Kakade , Sergey Levine

Fine-tuning foundation models has emerged as a powerful approach for generating objects with specific desired properties. Reinforcement learning (RL) provides an effective framework for this purpose, enabling models to generate outputs that…

Machine Learning · Computer Science 2025-11-04 Pouya M. Ghari , Simone Sciabola , Ye Wang

Maximum entropy reinforcement learning integrates exploration into policy learning by providing additional intrinsic rewards proportional to the entropy of some distribution. In this paper, we propose a novel approach in which the intrinsic…

Machine Learning · Computer Science 2025-09-30 Adrien Bolland , Gaspard Lambrechts , Damien Ernst
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