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Deep reinforcement learning (DRL) has been applied in financial portfolio management to improve returns in changing market conditions. However, unlike most fields where DRL is widely used, the stock market is more volatile and dynamic as it…

Machine Learning · Computer Science 2025-02-12 Fengchen Gu , Angelos Stefanidis , Ángel García-Fernández , Jionglong Su , Huakang Li

The realm of High-Frequency Trading (HFT) is characterized by rapid decision-making processes that capitalize on fleeting market inefficiencies. As the financial markets become increasingly competitive, there is a pressing need for…

Trading and Market Microstructure · Quantitative Finance 2023-11-21 Soumyadip Sarkar

The financial markets, which involve more than $90 trillion market capitals, attract the attention of innumerable investors around the world. Recently, reinforcement learning in financial markets (FinRL) has emerged as a promising direction…

Trading and Market Microstructure · Quantitative Finance 2023-03-06 Shuo Sun , Molei Qin , Xinrun Wang , Bo An

The inherent volatility and dynamic fluctuations within the financial stock market underscore the necessity for investors to employ a comprehensive and reliable approach that integrates risk management strategies, market trends, and the…

Trading and Market Microstructure · Quantitative Finance 2024-11-13 Alhassan S. Yasin , Prabdeep S. Gill

Generating asset-specific trading signals based on the financial conditions of the assets is one of the challenging problems in automated trading. Various asset trading rules are proposed experimentally based on different technical analysis…

Artificial Intelligence · Computer Science 2020-10-28 Mehran Taghian , Ahmad Asadi , Reza Safabakhsh

Financial domain tasks, such as trading in market exchanges, are challenging and have long attracted researchers. The recent achievements and the consequent notoriety of Reinforcement Learning (RL) have also increased its adoption in…

While researchers in the asset management industry have mostly focused on techniques based on financial and risk planning techniques like Markowitz efficient frontier, minimum variance, maximum diversification or equal risk parity, in…

Machine Learning · Computer Science 2020-10-20 Eric Benhamou , David Saltiel , Sandrine Ungari , Abhishek Mukhopadhyay

Process rewards have been widely used in deep reinforcement learning to improve training efficiency, reduce variance, and prevent reward hacking. In LLM reasoning, existing works also explore various solutions for learning effective process…

Machine Learning · Computer Science 2026-05-21 Xian Wu , Kaijie Zhu , Ying Zhang , Lun Wang , Wenbo Guo

Envisioned application areas for reinforcement learning (RL) include autonomous driving, precision agriculture, and finance, which all require RL agents to make decisions in the real world. A significant challenge hindering the adoption of…

Machine Learning · Computer Science 2025-01-20 Dominik Baumann , Erfaun Noorani , James Price , Ole Peters , Colm Connaughton , Thomas B. Schön

Multi-objective decision-making problems have emerged in numerous real-world scenarios, such as video games, navigation and robotics. Considering the clear advantages of Reinforcement Learning (RL) in optimizing decision-making processes,…

Machine Learning · Computer Science 2025-01-15 Erlong Liu , Yu-Chang Wu , Xiaobin Huang , Chengrui Gao , Ren-Jian Wang , Ke Xue , Chao Qian

Reinforcement Learning (RL) based methods have seen their paramount successes in solving serial decision-making and control problems in recent years. For conventional RL formulations, Markov Decision Process (MDP) and state-action-value…

Machine Learning · Computer Science 2020-06-09 Ziyao Zhang , Liang Ma , Kin K. Leung , Konstantinos Poularakis , Mudhakar Srivatsa

Developing professional, structured reasoning on par with human financial analysts and traders remains a central challenge in AI for finance, where markets demand interpretability and trust. Traditional time-series models lack…

Trading and Market Microstructure · Quantitative Finance 2025-09-16 Yijia Xiao , Edward Sun , Tong Chen , Fang Wu , Di Luo , Wei Wang

Many real-world applications require an agent to make robust and deliberate decisions with multimodal information (e.g., robots with multi-sensory inputs). However, it is very challenging to train the agent via reinforcement learning (RL)…

Machine Learning · Computer Science 2023-02-21 Jinming Ma , Feng Wu , Yingfeng Chen , Xianpeng Ji , Yu Ding

This paper introduces a deep reinforcement learning (RL) framework for optimizing the operations of power plants pairing renewable energy with storage. The objective is to maximize revenue from energy markets while minimizing storage…

Machine Learning · Computer Science 2023-06-16 Lucien Werner , Peeyush Kumar

This study develops and evaluates a deep reinforcement learning framework for dynamic portfolio allocation across global equity markets. The Soft Actor-Critic algorithm is used to learn continuous portfolio weights within a Markov Decision…

Portfolio Management · Quantitative Finance 2026-05-19 Kamil Kashif , Robert Ślepaczuk

In this paper, a new population-guided parallel learning scheme is proposed to enhance the performance of off-policy reinforcement learning (RL). In the proposed scheme, multiple identical learners with their own value-functions and…

Machine Learning · Computer Science 2020-01-10 Whiyoung Jung , Giseung Park , Youngchul Sung

This paper develops a novel multi-agent reinforcement learning (MARL) framework for reinsurance treaty bidding, addressing long-standing inefficiencies in traditional broker-mediated placement processes. We pose the core research question:…

Artificial Intelligence · Computer Science 2026-03-24 Stella C. Dong , James R. Finlay

Post-training with Reinforcement Learning (RL) has substantially improved reasoning in Large Language Models (LLMs) via test-time scaling. However, extending this paradigm to Multimodal LLMs (MLLMs) through verbose rationales yields limited…

Computation and Language · Computer Science 2026-02-16 Bangzheng Li , Jianmo Ni , Chen Qu , Ian Miao , Liu Yang , Xingyu Fu , Muhao Chen , Derek Zhiyuan Cheng

Multi-objective reinforcement learning (MORL) approaches have emerged to tackle many real-world problems with multiple conflicting objectives by maximizing a joint objective function weighted by a preference vector. These approaches find…

Machine Learning · Computer Science 2023-05-31 Toygun Basaklar , Suat Gumussoy , Umit Y. Ogras

In recent years, there has been a growing trend of applying Reinforcement Learning (RL) in financial applications. This approach has shown great potential to solve decision-making tasks in finance. In this survey, we present a comprehensive…

Computational Finance · Quantitative Finance 2024-11-21 Yahui Bai , Yuhe Gao , Runzhe Wan , Sheng Zhang , Rui Song
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