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Applications in quantitative finance such as optimal trade execution, risk management of options, and optimal asset allocation involve the solution of high dimensional and nonlinear Partial Differential Equations (PDEs). The connection…

Machine Learning · Statistics 2019-10-28 Batuhan Güler , Alexis Laignelet , Panos Parpas

High-dimensional PDEs have been a longstanding computational challenge. We propose to solve high-dimensional PDEs by approximating the solution with a deep neural network which is trained to satisfy the differential operator, initial…

Mathematical Finance · Quantitative Finance 2018-10-17 Justin Sirignano , Konstantinos Spiliopoulos

The finite element method, finite difference method, finite volume method and spectral method have achieved great success in solving partial differential equations. However, the high accuracy of traditional numerical methods is at the cost…

Numerical Analysis · Mathematics 2020-09-25 Jian Li , Jing Yue , Wen Zhang , Wansuo Duan

In this work, we propose a novel backward differential deep learning-based algorithm for solving high-dimensional nonlinear backward stochastic differential equations (BSDEs), where the deep neural network (DNN) models are trained not only…

Numerical Analysis · Mathematics 2024-04-15 Lorenc Kapllani , Long Teng

Classical numerical methods for solving partial differential equations suffer from the curse dimensionality mainly due to their reliance on meticulously generated spatio-temporal grids. Inspired by modern deep learning based techniques for…

Machine Learning · Statistics 2018-04-20 Maziar Raissi

We examine the challenges associated with numerical integration when applying Neural Networks to solve Partial Differential Equations (PDEs). We specifically investigate the Deep Ritz Method (DRM), chosen for its practical applicability and…

Numerical Analysis · Mathematics 2025-05-09 Jamie M. Taylor , David Pardo

Nonlinear partial differential equations (PDEs) are used to model dynamical processes in a large number of scientific fields, ranging from finance to biology. In many applications standard local models are not sufficient to accurately…

Numerical Analysis · Mathematics 2022-05-10 Victor Boussange , Sebastian Becker , Arnulf Jentzen , Benno Kuckuck , Loïc Pellissier

In this paper we establish a connection between non-convex optimization methods for training deep neural networks and nonlinear partial differential equations (PDEs). Relaxation techniques arising in statistical physics which have already…

Machine Learning · Computer Science 2017-06-05 Pratik Chaudhari , Adam Oberman , Stanley Osher , Stefano Soatto , Guillaume Carlier

In this article, we introduce and analyze a deep learning based approximation algorithm for SPDEs. Our approach employs neural networks to approximate the solutions of SPDEs along given realizations of the driving noise process. If applied…

Numerical Analysis · Mathematics 2025-10-21 Christian Beck , Sebastian Becker , Patrick Cheridito , Arnulf Jentzen , Ariel Neufeld

We provide a probabilistic representations of the solution of some semilinear hyperbolicand high-order PDEs based on branching diffusions. These representations pave theway for a Monte-Carlo approximation of the solution, thus bypassing the…

Probability · Mathematics 2018-01-29 Pierre Henry-Labordere , Nizar Touzi

The efficient simulation of the mean value of a non-linear functional of the solution to a linear stochastic partial differential equation (SPDE) with additive Gaussian noise is considered. A Galerkin finite element method is employed along…

Probability · Mathematics 2019-07-25 Andreas Petersson

In this paper, we propose a new stochastic column-block gradient descent method for solving nonlinear systems of equations. It has a descent direction and holds an approximately optimal step size obtained through an optimization problem. We…

Numerical Analysis · Mathematics 2025-07-21 Naiyu Jiang , Wendi Bao , Lili Xing , Weiguo Li

Nonlinear differential equations are challenging to solve numerically and are important to understanding the dynamics of many physical systems. Deep neural networks have been applied to help alleviate the computational cost that is…

Numerical Analysis · Mathematics 2020-10-27 Bryce Chudomelka , Youngjoon Hong , Hyunwoo Kim , Jinyoung Park

In recent years, there has been an increasing interest in using deep learning and neural networks to tackle scientific problems, particularly in solving partial differential equations (PDEs). However, many neural network-based methods, such…

Machine Learning · Computer Science 2025-02-14 Adrian Celaya , Yimo Wang , David Fuentes , Beatrice Riviere

We develop several deep learning algorithms for approximating families of parametric PDE solutions. The proposed algorithms approximate solutions together with their gradients, which in the context of mathematical finance means that the…

Computational Finance · Quantitative Finance 2022-01-19 Marc Sabate Vidales , David Siska , Lukasz Szpruch

Deep neural networks are powerful tools for approximating functions, and they are applied to successfully solve various problems in many fields. In this paper, we propose a neural network-based numerical method to solve partial differential…

Numerical Analysis · Mathematics 2022-02-01 Yong Shang , Fei Wang , Jingbo Sun

We are concerned with the numerical resolution of backward stochastic differential equations. We propose a new numerical scheme based on iterative regressions on function bases, which coefficients are evaluated using Monte Carlo…

Probability · Mathematics 2007-05-23 Emmanuel Gobet , Jean-Philippe Lemor , Xavier Warin

We propose a deep learning algorithm for solving high-dimensional parabolic integro-differential equations (PIDEs) and high-dimensional forward-backward stochastic differential equations with jumps (FBSDEJs), where the jump-diffusion…

Numerical Analysis · Mathematics 2023-01-31 Wansheng Wang , Jie Wang , Jinping Li , Feifei Gao , Yi Fu

In this paper we propose a new numerical method for solving stochastic differential equations (SDEs). As an application of this method we propose an explicit numerical scheme for a super linear SDE for which the usual Euler scheme diverges.

Numerical Analysis · Mathematics 2013-03-14 Nikolaos Halidias

Nonlinear differential equations (DEs) are used in a wide range of scientific problems to model complex dynamic systems. The differential equations often contain unknown parameters that are of scientific interest, which have to be estimated…

Computation · Statistics 2021-09-07 Shijia Wang , Shufei Ge , Renny Doig , Liangliang Wang