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While research of reinforcement learning applied to financial markets predominantly concentrates on finding optimal behaviours, it is worth to realize that the reinforcement learning returns $G_t$ and state value functions themselves are of…

Statistical Finance · Quantitative Finance 2024-05-21 Colin D. Grab

Applications of Reinforcement Learning in the Finance Technology (Fintech) have acquired a lot of admiration lately. Undoubtedly Reinforcement Learning, through its vast competence and proficiency, has aided remarkable results in the field…

Computational Finance · Quantitative Finance 2023-05-15 Nadeem Malibari , Iyad Katib , Rashid Mehmood

We study paycheck optimization, which examines how to allocate income in order to achieve several competing financial goals. For paycheck optimization, a quantitative methodology is missing, due to a lack of a suitable problem formulation.…

In this paper, we study the optimal dividend problem under the continuous time diffusion model with the bounded dividend rate from the Reinforcement Learning (RL) perspective. Unlike the standard literature, our main focus will be on…

Optimization and Control · Mathematics 2026-03-30 Lihua Bai , Thejani Gamage , Jin Ma , Gaozhan Wang

Financial markets investors are involved in many games -- they must interact with other agents to achieve their goals. Among them are those directly connected with their activity on markets but one cannot neglect other aspects that…

Trading and Market Microstructure · Quantitative Finance 2008-12-02 Edward W. Piotrowski , Jan Sladkowski , Anna Szczypinska

Reinforcement learning (RL) is one of the three basic paradigms of machine learning. It has demonstrated impressive performance in many complex tasks like Go and StarCraft, which is increasingly involved in smart manufacturing and…

Machine Learning · Computer Science 2022-06-03 Mingqi Yuan

We consider the problem of imitation learning from a finite set of expert trajectories, without access to reinforcement signals. The classical approach of extracting the expert's reward function via inverse reinforcement learning, followed…

Machine Learning · Computer Science 2019-06-10 Ruohan Wang , Carlo Ciliberto , Pierluigi Amadori , Yiannis Demiris

Reinforcement learning is a framework for learning to act sequentially in an unknown environment. We propose a natural approach for modeling policy structure in policy gradients. The key idea is to optimize for a subset of future rewards:…

Machine Learning · Computer Science 2026-03-09 Puneet Mathur , Branislav Kveton , Subhojyoti Mukherjee , Viet Dac Lai

In many sequential decision making tasks, it is challenging to design reward functions that help an RL agent efficiently learn behavior that is considered good by the agent designer. A number of different formulations of the reward-design…

Artificial Intelligence · Computer Science 2018-06-25 Zeyu Zheng , Junhyuk Oh , Satinder Singh

Reward machines are an established tool for dealing with reinforcement learning problems in which rewards are sparse and depend on complex sequences of actions. However, existing algorithms for learning reward machines assume an overly…

Machine Learning · Computer Science 2025-10-20 Jan Corazza , Ivan Gavran , Daniel Neider

Model-based reinforcement learning (RL) is appealing because (i) it enables planning and thus more strategic exploration, and (ii) by decoupling dynamics from rewards, it enables fast transfer to new reward functions. However, learning an…

Machine Learning · Computer Science 2020-07-14 Evan Zheran Liu , Ramtin Keramati , Sudarshan Seshadri , Kelvin Guu , Panupong Pasupat , Emma Brunskill , Percy Liang

Reinforcement learning agents are fundamentally limited by the quality of the reward functions they learn from, yet reward design is often overlooked under the assumption that a well-defined reward is readily available. However, in…

Rewards play a crucial role in reinforcement learning. To arrive at the desired policy, the design of a suitable reward function often requires significant domain expertise as well as trial-and-error. Here, we aim to minimize the effort…

Robotics · Computer Science 2020-11-18 Zheng Wu , Wenzhao Lian , Vaibhav Unhelkar , Masayoshi Tomizuka , Stefan Schaal

Reward design is a critical part of the application of reinforcement learning, the performance of which strongly depends on how well the reward signal frames the goal of the designer and how well the signal assesses progress in reaching…

Machine Learning · Computer Science 2022-08-01 Yixiang Wang , Yujing Hu , Feng Wu , Yingfeng Chen

Reinforcement learning (RL) has significantly improved the reasoning ability of large language models. However, current reward models underperform in challenging reasoning scenarios and predominant RL training paradigms rely on rule-based…

Computation and Language · Computer Science 2025-07-30 Meng Zhou , Bei Li , Jiahao Liu , Xiaowen Shi , Yang Bai , Rongxiang Weng , Jingang Wang , Xunliang Cai

For continuous state-action space scenarios, classical reinforcement learning (RL) theory predominantly focuses on low-rank Markov decision processes (MDPs), which provide sample-efficient guarantees at the expense of restrictive structural…

Machine Learning · Computer Science 2026-05-11 Kun Long , Yuqiang Li , Xianyi Wu

The objective of a reinforcement learning agent is to discover better actions through exploration. However, typical exploration techniques aim to maximize rewards, often incurring high costs in both exploration and learning processes. We…

Machine Learning · Computer Science 2024-12-24 Akane Tsuboya , Yu Kono , Tatsuji Takahashi

Reward machines are automaton-like structures that capture the memory required to accomplish a multi-stage task. When combined with reinforcement learning or optimal control methods, they can be used to synthesize robot policies to achieve…

Robotics · Computer Science 2026-04-10 Mohamad Louai Shehab , Antoine Aspeel , Necmiye Ozay

Conventionally, supervised fine-tuning (SFT) is treated as a simple imitation learning process that only trains a policy to imitate expert behavior on demonstration datasets. In this work, we challenge this view by establishing a…

Machine Learning · Computer Science 2025-10-06 Jiangnan Li , Thuy-Trang Vu , Ehsan Abbasnejad , Gholamreza Haffari

Temporal point process is an expressive tool for modeling event sequences over time. In this paper, we take a reinforcement learning view whereby the observed sequences are assumed to be generated from a mixture of latent policies. The…

Machine Learning · Computer Science 2019-07-01 Weichang Wu , Junchi Yan , Xiaokang Yang , Hongyuan Zha