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Related papers: Reinforcement Learning for Portfolio Management

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We present a reinforcement-learning (RL) framework for dynamic hedging of equity index option exposures under realistic transaction costs and position limits. We hedge a normalized option-implied equity exposure (one unit of underlying…

Portfolio Management · Quantitative Finance 2025-12-16 Travon Lucius , Christian Koch , Jacob Starling , Julia Zhu , Miguel Urena , Carrie Hu

Model-free deep reinforcement learning has been shown to exhibit good performance in domains ranging from video games to simulated robotic manipulation and locomotion. However, model-free methods are known to perform poorly when the…

Machine Learning · Computer Science 2018-03-20 Tuomas Haarnoja , Vitchyr Pong , Aurick Zhou , Murtaza Dalal , Pieter Abbeel , Sergey Levine

In recent years, model-free methods that use deep learning have achieved great success in many different reinforcement learning environments. Most successful approaches focus on solving a single task, while multi-task reinforcement learning…

Machine Learning · Computer Science 2017-05-25 Asier Mujika

We apply Reinforcement Learning algorithms to solve the classic quantitative finance Market Making problem, in which an agent provides liquidity to the market by placing buy and sell orders while maximizing a utility function. The optimal…

Machine Learning · Computer Science 2021-04-12 Matias Selser , Javier Kreiner , Manuel Maurette

The Enterprise Intelligence Platform must integrate logs from numerous third-party vendors in order to perform various downstream tasks. However, vendor documentation is often unavailable at test time. It is either misplaced, mismatched,…

Artificial Intelligence · Computer Science 2025-10-17 Wen-Kwang Tsao , Yao-Ching Yu , Chien-Ming Huang

Model-free deep reinforcement learning algorithms have been shown to be capable of learning a wide range of robotic skills, but typically require a very large number of samples to achieve good performance. Model-based algorithms, in…

Machine Learning · Computer Science 2017-12-05 Anusha Nagabandi , Gregory Kahn , Ronald S. Fearing , Sergey Levine

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

In this paper, we present a novel trading strategy that integrates reinforcement learning methods with clustering techniques for portfolio management in multi-period trading. Specifically, we leverage the clustering method to categorize…

Portfolio Management · Quantitative Finance 2023-10-03 Zhengyong Jiang , Jeyan Thiayagalingam , Jionglong Su , Jinjun Liang

As a model-free algorithm, deep reinforcement learning (DRL) agent learns and makes decisions by interacting with the environment in an unsupervised way. In recent years, DRL algorithms have been widely applied by scholars for portfolio…

Portfolio Management · Quantitative Finance 2024-02-27 Ruoyu Sun , Angelos Stefanidis , Zhengyong Jiang , Jionglong Su

This study investigates how Multi-Agent Reinforcement Learning (MARL) can improve dynamic pricing strategies in supply chains, particularly in contexts where traditional ERP systems rely on static, rule-based approaches that overlook…

Machine Learning · Computer Science 2025-07-04 Thomas Hazenberg , Yao Ma , Seyed Sahand Mohammadi Ziabari , Marijn van Rijswijk

Reinforcement learning is a promising paradigm for learning robot control, allowing complex control policies to be learned without requiring a dynamics model. However, even state of the art algorithms can be difficult to tune for optimum…

Machine Learning · Computer Science 2022-10-03 Renata Garcia , Wouter Caarls

Execution algorithms are vital to modern trading, they enable market participants to execute large orders while minimising market impact and transaction costs. As these algorithms grow more sophisticated, optimising them becomes…

Computational Finance · Quantitative Finance 2025-10-28 Ollie Olby , Andreea Bacalum , Rory Baggott , Namid Stillman

Reinforcement Learning (RL) has shown significant promise in automated portfolio management; however, effectively balancing risk and return remains a central challenge, as many models fail to adapt to dynamically changing market conditions.…

Machine Learning · Computer Science 2025-12-04 Jiayi Chen , Jing Li , Guiling Wang

Deep Q-Network (DQN) based multi-agent systems (MAS) for reinforcement learning (RL) use various schemes where in the agents have to learn and communicate. The learning is however specific to each agent and communication may be…

Machine Learning · Computer Science 2020-08-11 Abdul Mueed Hafiz , Ghulam Mohiuddin Bhat

Although reinforcement learning has seen tremendous success recently, this kind of trial-and-error learning can be impractical or inefficient in complex environments. The use of demonstrations, on the other hand, enables agents to benefit…

Machine Learning · Computer Science 2023-03-29 Tongzhou Mu , Hao Su

Reinforcement Learning (RL) agents often struggle with efficiency and performance in complex environments. We propose a novel framework that uses a Large Language Model (LLM) to dynamically generate a curriculum over available actions,…

Machine Learning · Computer Science 2026-04-03 Amirreza Alasti , Efe Erdal , Yücel Celik , Theresa Eimer

This study investigates the development of an optimal execution strategy through reinforcement learning, aiming to determine the most effective approach for traders to buy and sell inventory within a finite time horizon. Our proposed model…

Trading and Market Microstructure · Quantitative Finance 2025-11-04 Yadh Hafsi , Edoardo Vittori

In recent years, quantitative investment methods combined with artificial intelligence have attracted more and more attention from investors and researchers. Existing related methods based on the supervised learning are not very suitable…

Machine Learning · Computer Science 2021-05-11 Sihang Chen , Weiqi Luo , Chao Yu

This work focuses on the dynamic hedging of financial derivatives, where a reinforcement learning algorithm is designed to minimize the variance of the delta hedging process. In contrast to previous research in this area, we apply…

Optimization and Control · Mathematics 2023-06-21 Cong Zheng , Jiafa He , Can Yang

This scientific research paper presents an innovative approach based on deep reinforcement learning (DRL) to solve the algorithmic trading problem of determining the optimal trading position at any point in time during a trading activity in…

Trading and Market Microstructure · Quantitative Finance 2022-06-06 Thibaut Théate , Damien Ernst