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Related papers: Towards a fully RL-based Market Simulator

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In reinforcement learning (RL), agents continually interact with the environment and use the feedback to refine their behavior. To guide policy optimization, reward models are introduced as proxies of the desired objectives, such that when…

Machine Learning · Computer Science 2025-06-19 Rui Yu , Shenghua Wan , Yucen Wang , Chen-Xiao Gao , Le Gan , Zongzhang Zhang , De-Chuan Zhan

Reinforcement Learning (RL) has emerged as a powerful paradigm in Artificial Intelligence (AI), enabling agents to learn optimal behaviors through interactions with their environments. Drawing from the foundations of trial and error, RL…

Artificial Intelligence · Computer Science 2025-02-04 Majid Ghasemi , Amir Hossein Moosavi , Dariush Ebrahimi

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

Making sophisticated, robust, and safe sequential decisions is at the heart of intelligent systems. This is especially critical for planning in complex multi-agent environments, where agents need to anticipate other agents' intentions and…

Robotics · Computer Science 2020-01-29 Yichuan Charlie Tang

Deep reinforcement learning (DRL) has shown huge potentials in building financial market simulators recently. However, due to the highly complex and dynamic nature of real-world markets, raw historical financial data often involve large…

Trading and Market Microstructure · Quantitative Finance 2022-03-03 Xiao-Yang Liu , Jingyang Rui , Jiechao Gao , Liuqing Yang , Hongyang Yang , Zhaoran Wang , Christina Dan Wang , Jian Guo

Dynamic portfolio optimization is the process of sequentially allocating wealth to a collection of assets in some consecutive trading periods, based on investors' return-risk profile. Automating this process with machine learning remains a…

Machine Learning · Computer Science 2019-01-28 Pengqian Yu , Joon Sern Lee , Ilya Kulyatin , Zekun Shi , Sakyasingha Dasgupta

The challenge of developing powerful and general Reinforcement Learning (RL) agents has received increasing attention in recent years. Much of this effort has focused on the single-agent setting, in which an agent maximizes a predefined…

Machine Learning · Computer Science 2020-10-21 Jiachen Yang , Ang Li , Mehrdad Farajtabar , Peter Sunehag , Edward Hughes , Hongyuan Zha

Simulations, although powerful in accurately replicating real-world systems, often remain inaccessible to non-technical users due to their complexity. Conversely, large language models (LLMs) provide intuitive, language-based interactions…

Computation and Language · Computer Science 2025-05-22 Jacob Kleiman , Kevin Frank , Joseph Voyles , Sindy Campagna

Agent-based models (ABMs) are simulation models used in economics to overcome some of the limitations of traditional frameworks based on general equilibrium assumptions. However, agents within an ABM follow predetermined 'bounded rational'…

Machine Learning · Computer Science 2024-10-23 Simone Brusatin , Tommaso Padoan , Andrea Coletta , Domenico Delli Gatti , Aldo Glielmo

Recently, empowered with the powerful capabilities of neural networks, reinforcement learning (RL) has successfully tackled numerous challenging tasks. However, while these models demonstrate enhanced decision-making abilities, they are…

Machine Learning · Computer Science 2025-10-09 Zhengpeng Xie , Yulong Zhang

Trading markets represent a real-world financial application to deploy reinforcement learning agents, however, they carry hard fundamental challenges such as high variance and costly exploration. Moreover, markets are inherently a…

Machine Learning · Computer Science 2021-07-20 Yue Gao , Kry Yik Chau Lui , Pablo Hernandez-Leal

Transmission expansion planning in electricity markets is tightly coupled with the strategic bidding behaviors of generation companies. This paper proposes a Reinforcement Learning (RL)-based co-optimization framework that simultaneously…

Systems and Control · Electrical Eng. & Systems 2026-02-24 Tomonari Kanazawa , Hikaru Hoshino , Eiko Furutani

In this study, we developed a computational framework for simulating large-scale agent-based financial markets. Our platform supports trading multiple simultaneous assets and leverages distributed computing to scale the number and…

Trading and Market Microstructure · Quantitative Finance 2024-02-01 Aaron Wheeler , Jeffrey D. Varner

Traditional economic models often rely on fixed assumptions about market dynamics, limiting their ability to capture the complexities and stochastic nature of real-world scenarios. However, reality is more complex and includes noise, making…

Reinforcement Learning (RL) is a learning paradigm in which the agent learns from its environment through trial and error. Deep reinforcement learning (DRL) algorithms represent the agent's policies using neural networks, making their…

Artificial Intelligence · Computer Science 2024-09-10 Jasmina Gajcin , Jovan Jeromela , Ivana Dusparic

Peer-to-peer (P2P) energy trading is becoming central to modern distribution systems as rooftop PV and home energy management systems become pervasive, yet most existing market and reinforcement learning designs emphasize efficiency or…

Systems and Control · Electrical Eng. & Systems 2025-08-27 Shrenik Jadhav , Birva Sevak , Srijita Das , Akhtar Hussain , Wencong Su , Van-Hai Bui

We study the problem of training a principal in a multi-agent general-sum game using reinforcement learning (RL). Learning a robust principal policy requires anticipating the worst possible strategic responses of other agents, which is…

Machine Learning · Computer Science 2022-12-21 Eric Zhao , Alexander R. Trott , Caiming Xiong , Stephan Zheng

Reinforcement Learning (RL) enables an intelligent agent to optimise its performance in a task by continuously taking action from an observed state and receiving a feedback from the environment in form of rewards. RL typically uses tables…

Artificial Intelligence · Computer Science 2025-01-28 Alberto Castagna

Recent work has shown that deep reinforcement-learning agents can learn to follow language-like instructions from infrequent environment rewards. However, this places on environment designers the onus of designing language-conditional…

Artificial Intelligence · Computer Science 2019-12-24 Dzmitry Bahdanau , Felix Hill , Jan Leike , Edward Hughes , Arian Hosseini , Pushmeet Kohli , Edward Grefenstette

This thesis presents the results of a comprehensive research project focused on applying Reinforcement Learning (RL) to the problem of market making in financial markets. Market makers (MMs) play a fundamental role in providing liquidity,…

Machine Learning · Computer Science 2025-07-28 Óscar Fernández Vicente