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Related papers: Deep Deterministic Portfolio Optimization

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Reinforcement learning algorithms such as the deep deterministic policy gradient algorithm (DDPG) has been widely used in continuous control tasks. However, the model-free DDPG algorithm suffers from high sample complexity. In this paper we…

Machine Learning · Computer Science 2019-11-14 Qingpeng Cai , Ling Pan , Pingzhong Tang

While reinforcement learning algorithms provide automated acquisition of optimal policies, practical application of such methods requires a number of design decisions, such as manually designing reward functions that not only define the…

Machine Learning · Computer Science 2022-12-29 Tim G. J. Rudner , Vitchyr H. Pong , Rowan McAllister , Yarin Gal , Sergey Levine

Reinforcement Learning algorithms can learn complex behavioral patterns for sequential decision making tasks wherein an agent interacts with an environment and acquires feedback in the form of rewards sampled from it. Traditionally, such…

Machine Learning · Computer Science 2020-09-23 Sahil Sharma , Aravind Srinivas , Balaraman Ravindran

Data processing and analytics are fundamental and pervasive. Algorithms play a vital role in data processing and analytics where many algorithm designs have incorporated heuristics and general rules from human knowledge and experience to…

Machine Learning · Computer Science 2022-02-07 Qingpeng Cai , Can Cui , Yiyuan Xiong , Wei Wang , Zhongle Xie , Meihui Zhang

In this paper, we focus on finding the optimal hedging strategy of a credit index option using reinforcement learning. We take a practical approach, where the focus is on realism i.e. discrete time, transaction costs; even testing our…

Trading and Market Microstructure · Quantitative Finance 2023-07-20 Francesco Mandelli , Marco Pinciroli , Michele Trapletti , Edoardo Vittori

The volatility fitting is one of the core problems in the equity derivatives business. Through a set of deterministic rules, the degrees of freedom in the implied volatility surface encoding (parametrization, density, diffusion) are…

Computational Finance · Quantitative Finance 2024-10-16 Emmanuel Gnabeyeu , Omar Karkar , Imad Idboufous

This study is about the implementation of a reinforcement learning algorithm in the trajectory planning of manipulators. We have a 7-DOF robotic arm to pick and place the randomly placed block at a random target point in an unknown…

Robotics · Computer Science 2024-03-26 Osama Ahmad , Zawar Hussain , Hammad Naeem

The foraging behavior of animals is a paradigm of target search in nature. Understanding which foraging strategies are optimal and how animals learn them are central challenges in modeling animal foraging. While the question of optimality…

Statistical Mechanics · Physics 2024-04-15 Gorka Muñoz-Gil , Andrea López-Incera , Lukas J. Fiderer , Hans J. Briegel

This paper proposes a reinforcement learning--based framework for cryptocurrency portfolio management using the Soft Actor--Critic (SAC) and Deep Deterministic Policy Gradient (DDPG) algorithms. Traditional portfolio optimization methods…

Computational Finance · Quantitative Finance 2025-11-27 Kamal Paykan

Model-free reinforcement learning algorithms such as Deep Deterministic Policy Gradient (DDPG) often require additional exploration strategies, especially if the actor is of deterministic nature. This work evaluates the use of model-based…

Machine Learning · Computer Science 2019-11-19 Kevin Sebastian Luck , Mel Vecerik , Simon Stepputtis , Heni Ben Amor , Jonathan Scholz

Reinforcement learning is a powerful approach for training an optimal policy to solve complex problems in a given system. This project aims to demonstrate the application of reinforcement learning in stochastic process environments with…

Machine Learning · Computer Science 2023-08-08 Kuangheng He

Reinforcement Learning, a machine learning framework for training an autonomous agent based on rewards, has shown outstanding results in various domains. However, it is known that learning a good policy is difficult in a domain where…

Machine Learning · Computer Science 2019-06-27 Takahisa Imagawa , Takuya Hiraoka , Yoshimasa Tsuruoka

Reinforcement Learning algorithms are primarily focused on learning a policy that maximizes expected return. As a result, the learned policy can exploit one or few reward sources. However, in many natural situations, it is desirable to…

Machine Learning · Computer Science 2026-03-31 Sagalpreet Singh , Rishi Saket , Aravindan Raghuveer

We develop an optimization framework centered around a core idea: once a (parametric) policy is specified, control authority is transferred to the policy, resulting in an autonomous dynamical system. Thus we should be able to optimize…

Machine Learning · Computer Science 2025-06-11 Emo Todorov

We test the performance of deep deterministic policy gradient (DDPG), a deep reinforcement learning algorithm, able to handle continuous state and action spaces, to learn Nash equilibria in a setting where firms compete in prices. These…

Computer Science and Game Theory · Computer Science 2025-09-30 Christoph Graf , Viktor Zobernig , Johannes Schmidt , Claude Klöckl

Deep reinforcement learning is a technique for solving problems in a variety of environments, ranging from Atari video games to stock trading. This method leverages deep neural network models to make decisions based on observations of a…

Machine Learning · Computer Science 2022-09-13 Anthony Dowling

Dynamic hedging is the practice of periodically transacting financial instruments to offset the risk caused by an investment or a liability. Dynamic hedging optimization can be framed as a sequential decision problem; thus, Reinforcement…

Computational Finance · Quantitative Finance 2024-02-26 Andrei Neagu , Frédéric Godin , Clarence Simard , Leila Kosseim

Portfolio Management is the process of overseeing a group of investments, referred to as a portfolio, with the objective of achieving predetermined investment goals. Portfolio optimization is a key component that involves allocating the…

Portfolio Management · Quantitative Finance 2026-02-20 Srijan Sood , Kassiani Papasotiriou , Marius Vaiciulis , Tucker Balch

Portfolio management is the art and science in fiance that concerns continuous reallocation of funds and assets across financial instruments to meet the desired returns to risk profile. Deep reinforcement learning (RL) has gained increasing…

Portfolio Management · Quantitative Finance 2023-10-30 Yinheng Li , Junhao Wang , Yijie Cao

Decision trees are ubiquitous in machine learning for their ease of use and interpretability. Yet, these models are not typically employed in reinforcement learning as they cannot be updated online via stochastic gradient descent. We…

Machine Learning · Computer Science 2020-06-29 Andrew Silva , Taylor Killian , Ivan Dario Jimenez Rodriguez , Sung-Hyun Son , Matthew Gombolay