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We proposed a new Portfolio Management method termed as Robust Log-Optimal Strategy (RLOS), which ameliorates the General Log-Optimal Strategy (GLOS) by approximating the traditional objective function with quadratic Taylor expansion. It…

Portfolio Management · Quantitative Finance 2018-05-02 Yifeng Guo , Xingyu Fu , Yuyan Shi , Mingwen Liu

Reinforcement learning (RL) algorithms are designed to optimize problem-solving by learning actions that maximize rewards, a task that becomes particularly challenging in random and nonstationary environments. Even advanced RL algorithms…

Machine Learning · Computer Science 2025-10-31 Sebastian Zieglmeier , Niklas Erdmann , Narada D. Warakagoda

Although Reinforcement Learning (RL) algorithms have found tremendous success in simulated domains, they often cannot directly be applied to physical systems, especially in cases where there are hard constraints to satisfy (e.g. on safety…

Machine Learning · Computer Science 2020-08-28 Harsh Satija , Philip Amortila , Joelle Pineau

In recent years, challenging control problems became solvable with deep reinforcement learning (RL). To be able to use RL for large-scale real-world applications, a certain degree of reliability in their performance is necessary. Reported…

Machine Learning · Computer Science 2020-11-11 Nirnai Rao , Elie Aljalbout , Axel Sauer , Sami Haddadin

Reactive synthesis algorithms allow automatic construction of policies to control an environment modeled as a Markov Decision Process (MDP) that are optimal with respect to high-level temporal logic specifications. However, they assume that…

Formal Languages and Automata Theory · Computer Science 2022-05-31 Rajeev Alur , Suguman Bansal , Osbert Bastani , Kishor Jothimurugan

The complexity of designing reward functions has been a major obstacle to the wide application of deep reinforcement learning (RL) techniques. Describing an agent's desired behaviors and properties can be difficult, even for experts. A new…

Machine Learning · Computer Science 2024-05-09 Wanqi Xue , Bo An , Shuicheng Yan , Zhongwen Xu

Reinforcement learning (RL) commonly relies on scalar rewards with limited ability to express temporal, conditional, or safety-critical goals, and can lead to reward hacking. Temporal logic expressible via the more general class of…

Artificial Intelligence · Computer Science 2025-11-26 Dominik Wagner , Leon Witzman , Luke Ong

This paper presents a comprehensive study on the use of ensemble Reinforcement Learning (RL) models in financial trading strategies, leveraging classifier models to enhance performance. By combining RL algorithms such as A2C, PPO, and SAC…

Machine Learning · Computer Science 2026-05-21 Zheli Xiong

Reinforcement learning (RL) has re-emerged as a natural approach for training interactive LLM agents in real-world environments. However, directly applying the widely used Group Relative Policy Optimization (GRPO) algorithm to multi-turn…

Machine Learning · Computer Science 2026-01-27 Junbo Li , Peng Zhou , Rui Meng , Meet P. Vadera , Lihong Li , Yang Li

Model-based meta-reinforcement learning (RL) methods have recently been shown to be a promising approach to improving the sample efficiency of RL in multi-task settings. However, the theoretical understanding of those methods is yet to be…

Machine Learning · Computer Science 2021-10-12 Takuya Hiraoka , Takahisa Imagawa , Voot Tangkaratt , Takayuki Osa , Takashi Onishi , Yoshimasa Tsuruoka

In this paper, we implement three state-of-art continuous reinforcement learning algorithms, Deep Deterministic Policy Gradient (DDPG), Proximal Policy Optimization (PPO) and Policy Gradient (PG)in portfolio management. All of them are…

Portfolio Management · Quantitative Finance 2018-11-20 Zhipeng Liang , Hao Chen , Junhao Zhu , Kangkang Jiang , Yanran Li

In many real-world applications of reinforcement learning (RL), deployed policies have varied impacts on different stakeholders, creating challenges in reaching consensus on how to effectively aggregate their preferences. Generalized…

Machine Learning · Computer Science 2025-07-17 Cheol Woo Kim , Jai Moondra , Shresth Verma , Madeleine Pollack , Lingkai Kong , Milind Tambe , Swati Gupta

The exponential growth of data-intensive applications has placed unprecedented demands on modern storage systems, necessitating dynamic and efficient optimization strategies. Traditional heuristics employed for storage performance…

Operating Systems · Computer Science 2025-08-25 Chiyu Cheng , Chang Zhou , Yang Zhao

This paper investigates the deep hedging framework, based on reinforcement learning (RL), for the dynamic hedging of swaptions, contrasting its performance with traditional sensitivity-based rho-hedging. We design agents under three…

Risk Management · Quantitative Finance 2025-12-09 Zaniar Ahmadi , Frédéric Godin

This article develops a deep reinforcement learning (Deep-RL) framework for dynamic pricing on managed lanes with multiple access locations and heterogeneity in travelers' value of time, origin, and destination. This framework relaxes…

Systems and Control · Electrical Eng. & Systems 2021-01-28 Venktesh Pandey , Evana Wang , Stephen D. Boyles

We present a novel method for Deep Reinforcement Learning (DRL), incorporating the convex property of the value function over the belief space in Partially Observable Markov Decision Processes (POMDPs). We introduce hard- and soft-enforced…

Machine Learning · Computer Science 2025-03-13 Daniel Koutas , Daniel Hettegger , Kostas G. Papakonstantinou , Daniel Straub

Sequential decision making under uncertainty is central to many Process Systems Engineering (PSE) challenges, where traditional methods often face limitations related to controlling and optimizing complex and stochastic systems.…

Systems and Control · Electrical Eng. & Systems 2025-10-29 Maximilian Bloor , Max Mowbray , Ehecatl Antonio Del Rio Chanona , Calvin Tsay

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

Partially Observable Markov Decision Processes (POMDPs) can model complex sequential decision-making problems under stochastic and uncertain environments. A main reason hindering their broad adoption in real-world applications is the lack…

Recently, there are many trials to apply reinforcement learning in asset allocation for earning more stable profits. In this paper, we compare performance between several reinforcement learning algorithms - actor-only, actor-critic and PPO…

Computational Finance · Quantitative Finance 2023-01-16 Jiwon Kim , Moon-Ju Kang , KangHun Lee , HyungJun Moon , Bo-Kwan Jeon