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This research develops a sentiment-driven quantitative trading system that leverages a large language model, FinGPT, for sentiment analysis, and explores a novel method for signal integration using a reinforcement learning algorithm, Twin…

Computational Finance · Quantitative Finance 2025-10-14 Wo Long , Wenxin Zeng , Xiaoyu Zhang , Ziyao Zhou

Ordinal regression and ranking are challenging due to inherent ordinal dependencies that conventional methods struggle to model. We propose Ranking-Aware Reinforcement Learning (RARL), a novel RL framework that explicitly learns these…

Machine Learning · Computer Science 2026-01-29 Aiming Hao , Chen Zhu , Jiashu Zhu , Jiahong Wu , Xiangxiang Chu

The sequential nature of decision-making in financial asset trading aligns naturally with the reinforcement learning (RL) framework, making RL a common approach in this domain. However, the low signal-to-noise ratio in financial markets…

Machine Learning · Computer Science 2024-11-14 Sven Goluža , Tomislav Kovačević , Stjepan Begušić , Zvonko Kostanjčar

Unfair stock trading strategies have been shown to be one of the most negative perceptions that customers can have concerning trading and may result in long-term losses for a company. Investment banks usually place trading orders for…

Trading and Market Microstructure · Quantitative Finance 2020-01-06 Wenhang Bao

Sentiment analysis, widely used in product reviews, also impacts financial markets by influencing asset prices through microblogs and news articles. Despite research in sentiment-driven finance, many studies focus on sentence-level…

Recent advances have demonstrated the effectiveness of Reinforcement Learning (RL) in improving the reasoning capabilities of Large Language Models (LLMs). However, existing works inevitably rely on high-quality instructions and verifiable…

Computation and Language · Computer Science 2026-01-27 Wenkai Fang , Shunyu Liu , Yang Zhou , Kongcheng Zhang , Tongya Zheng , Kaixuan Chen , Mingli Song , Dacheng Tao

Portfolio management (PM) is a fundamental financial planning task that aims to achieve investment goals such as maximal profits or minimal risks. Its decision process involves continuous derivation of valuable information from various data…

Portfolio Management · Quantitative Finance 2020-02-17 Yunan Ye , Hengzhi Pei , Boxin Wang , Pin-Yu Chen , Yada Zhu , Jun Xiao , Bo Li

Although Large Audio-Language Models (LALMs) have exhibited outstanding performance in auditory understanding, their performance in affective computing scenarios, particularly in emotion recognition, reasoning, and subtle sentiment…

Sound · Computer Science 2025-09-23 Pengcheng Li , Botao Zhao , Zuheng Kang , Junqing Peng , Xiaoyang Qu , Yayun He , Jianzong Wang

One typical assumption in inverse reinforcement learning (IRL) is that human experts act to optimize the expected utility of a stochastic cost with a fixed distribution. This assumption deviates from actual human behaviors under ambiguity.…

Machine Learning · Computer Science 2019-09-25 Rui Chen , Wenshuo Wang , Zirui Zhao , Ding Zhao

Researchers and financial professionals require robust computerized tools that allow users to rapidly operationalize and assess the semantic textual content in financial news. However, existing methods commonly work at the document-level…

Information Retrieval · Computer Science 2019-01-03 Bernhard Lutz , Nicolas Pröllochs , Dirk Neumann

With strong expressive capabilities in Large Language Models(LLMs), generative models effectively capture sentiment structures and deep semantics, however, challenges remain in fine-grained sentiment classification across multi-lingual and…

Computation and Language · Computer Science 2024-11-28 Jie Wang , Yichen Wang , Zhilin Zhang , Jianhao Zeng , Kaidi Wang , Zhiyang Chen

As intelligent trading agents based on reinforcement learning (RL) gain prevalence, it becomes more important to ensure that RL agents obey laws, regulations, and human behavioral expectations. There is substantial literature concerning the…

Machine Learning · Computer Science 2023-06-12 David Byrd

Cryptocurrency is a cryptography-based digital asset with extremely volatile prices. Around USD 70 billion worth of cryptocurrency is traded daily on exchanges. Trading cryptocurrency is difficult due to the inherent volatility of the…

Computational Finance · Quantitative Finance 2024-12-12 Hongshen Yang , Avinash Malik

For over a decade, machine learning has been used to extract opinion-holder-target structures from text to answer the question "Who expressed what kind of sentiment towards what?". Recent neural approaches do not outperform the…

Computation and Language · Computer Science 2018-04-20 Ana Marasović , Anette Frank

More and more stock trading strategies are constructed using deep reinforcement learning (DRL) algorithms, but DRL methods originally widely used in the gaming community are not directly adaptable to financial data with low signal-to-noise…

Computational Finance · Quantitative Finance 2023-07-27 Jie Zou , Jiashu Lou , Baohua Wang , Sixue Liu

There are multiple sources of financial news online which influence market movements and trader's decisions. This highlights the need for accurate sentiment analysis, in addition to having appropriate algorithmic trading techniques, to…

Computation and Language · Computer Science 2024-03-20 Thanos Konstantinidis , Giorgos Iacovides , Mingxue Xu , Tony G. Constantinides , Danilo Mandic

In this study, we integrate sentiment analysis within a financial framework by leveraging FinBERT, a fine-tuned BERT model specialized for financial text, to construct an advanced deep learning model based on Long Short-Term Memory (LSTM)…

Statistical Finance · Quantitative Finance 2025-06-12 Tingsong Jiang , Qingyun Zeng

One of the main goals of reinforcement learning (RL) is to provide a~way for physical machines to learn optimal behavior instead of being programmed. However, effective control of the machines usually requires fine time discretization. The…

Machine Learning · Computer Science 2022-07-12 Jakub Łyskawa , Paweł Wawrzyński

Advances in Reinforcement Learning (RL) span a wide variety of applications which motivate development in this area. While application tasks serve as suitable benchmarks for real world problems, RL is seldomly used in practical scenarios…

Trading and Market Microstructure · Quantitative Finance 2021-04-02 Karush Suri , Xiao Qi Shi , Konstantinos Plataniotis , Yuri Lawryshyn

Traditional stochastic control methods in finance rely on simplifying assumptions that often fail in real world markets. While these methods work well in specific, well defined scenarios, they underperform when market conditions change. We…

Computational Finance · Quantitative Finance 2025-09-23 Yang Li , Zhi Chen , Steve Y. Yang , Ruixun Zhang