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In this paper we study a multi-arm bandit problem in which the quality of each arm is measured by the Conditional Value at Risk (CVaR) at some level alpha of the reward distribution. While existing works in this setting mainly focus on…

Machine Learning · Computer Science 2022-03-22 Dorian Baudry , Romain Gautron , Emilie Kaufmann , Odalric-Ambryn Maillard

Portfolio optimization emerged with the seminal paper of Markowitz (1952). The original mean-variance framework is appealing because it is very efficient from a computational point of view. However, it also has one well-established failing…

Portfolio Management · Quantitative Finance 2019-09-24 Sarah Perrin , Thierry Roncalli

We consider a finite-horizon multi-armed bandit (MAB) problem in a Bayesian setting, for which we propose an information relaxation sampling framework. With this framework, we define an intuitive family of control policies that include…

Machine Learning · Computer Science 2021-06-17 Seungki Min , Costis Maglaras , Ciamac C. Moallemi

We consider the multi armed bandit problem in non-stationary environments. Based on the Bayesian method, we propose a variant of Thompson Sampling which can be used in both rested and restless bandit scenarios. Applying discounting to the…

Machine Learning · Statistics 2017-08-01 Vishnu Raj , Sheetal Kalyani

We study the real-valued combinatorial pure exploration of the multi-armed bandit (R-CPE-MAB) problem. In R-CPE-MAB, a player is given $d$ stochastic arms, and the reward of each arm $s\in\{1, \ldots, d\}$ follows an unknown distribution…

Machine Learning · Computer Science 2023-11-16 Shintaro Nakamura , Masashi Sugiyama

With the good development in the financial industry, the market starts to catch people's eyes, not only by the diversified investing choices ranging from bonds and stocks to futures and options but also by the general "high-risk,…

General Finance · Quantitative Finance 2020-07-03 Qingyin Ge , Yunuo Ma , Yuezhi Liao , Rongyu Li , Tianle Zhu

We discuss a multiple-play multi-armed bandit (MAB) problem in which several arms are selected at each round. Recently, Thompson sampling (TS), a randomized algorithm with a Bayesian spirit, has attracted much attention for its empirically…

Machine Learning · Statistics 2019-03-22 Junpei Komiyama , Junya Honda , Hiroshi Nakagawa

This note introduce three Bayesian style Multi-armed bandit algorithms: Information-directed sampling, Thompson Sampling and Generalized Thompson Sampling. The goal is to give an intuitive explanation for these three algorithms and their…

Machine Learning · Computer Science 2015-03-25 Li Zhou

Thompson Sampling has generated significant interest due to its better empirical performance than upper confidence bound based algorithms. In this paper, we study Thompson Sampling based algorithm for Unsupervised Sequential Selection (USS)…

Machine Learning · Computer Science 2020-09-17 Arun Verma , Manjesh K. Hanawal , Nandyala Hemachandra

In this paper we consider the contextual multi-armed bandit problem for linear payoffs under a risk-averse criterion. At each round, contexts are revealed for each arm, and the decision maker chooses one arm to pull and receives the…

Machine Learning · Computer Science 2022-06-28 Yifan Lin , Yuhao Wang , Enlu Zhou

In this paper, we propose a Thompson Sampling algorithm for \emph{unimodal} bandits, where the expected reward is unimodal over the partially ordered arms. To exploit the unimodal structure better, at each step, instead of exploration from…

Machine Learning · Computer Science 2021-06-17 Long Yang , Zhao Li , Zehong Hu , Shasha Ruan , Shijian Li , Gang Pan , Hongyang Chen

Recent advances in contextual bandit optimization and reinforcement learning have garnered interest in applying these methods to real-world sequential decision making problems. Real-world applications frequently have constraints with…

Machine Learning · Computer Science 2019-11-05 Samuel Daulton , Shaun Singh , Vashist Avadhanula , Drew Dimmery , Eytan Bakshy

Online portfolio selection is an integral componentof wealth management. The fundamental undertaking is tomaximise returns while minimising risk given investor con-straints. We aim to examine and improve modern strategiesto generate higher…

Computational Engineering, Finance, and Science · Computer Science 2021-09-29 Matthew Kruger , Terence L. van Zyl , Andrew Paskaramoorthy

We study a cooperative multi-agent multi-armed bandits with M agents and K arms. The goal of the agents is to minimized the cumulative regret. We adapt a traditional Thompson Sampling algoirthm under the distributed setting. However, with…

Artificial Intelligence · Computer Science 2021-09-10 Jing Dong , Tan Li , Shaolei Ren , Linqi Song

Markowitz mean-variance portfolios with sample mean and covariance as input parameters feature numerous issues in practice. They perform poorly out of sample due to estimation error, they experience extreme weights together with high…

Econometrics · Economics 2022-12-29 Wolfgang Karl Härdle , Yegor Klochkov , Alla Petukhina , Nikita Zhivotovskiy

We consider the classical multi-armed bandit problem with Markovian rewards. When played an arm changes its state in a Markovian fashion while it remains frozen when not played. The player receives a state-dependent reward each time it…

Optimization and Control · Mathematics 2022-11-15 Cem Tekin , Mingyan Liu

When two players are engaged in a repeated game with unknown payoff matrices, they may use single-agent multi-armed bandit algorithms to choose the actions independent of each other. We show that when the players use Thompson sampling, the…

Computer Science and Game Theory · Computer Science 2025-09-30 Yi Xiong , Ningyuan Chen , Xuefeng Gao

In a typical stochastic multi-armed bandit problem, the objective is often to maximize the expected sum of rewards over some time horizon $T$. While the choice of a strategy that accomplishes that is optimal with no additional information,…

Machine Learning · Computer Science 2023-11-01 Reda Alami , Mohammed Mahfoud , Mastane Achab

The literature on bandit learning and regret analysis has focused on contexts where the goal is to converge on an optimal action in a manner that limits exploration costs. One shortcoming imposed by this orientation is that it does not…

Machine Learning · Computer Science 2017-05-01 Daniel Russo , David Tse , Benjamin Van Roy

We consider stochastic multi-armed bandit problems with complex actions over a set of basic arms, where the decision maker plays a complex action rather than a basic arm in each round. The reward of the complex action is some function of…

Machine Learning · Statistics 2013-11-05 Aditya Gopalan , Shie Mannor , Yishay Mansour