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In this note we propose a new approach towards solving numerically optimal stopping problems via reinforced regression based Monte Carlo algorithms. The main idea of the method is to reinforce standard linear regression algorithms in each…

Numerical Analysis · Mathematics 2019-07-02 Denis Belomestny , John Schoenmakers , Vladimir Spokoiny , Bakhyt Zharkynbay

Tail risk protection is in the focus of the financial industry and requires solid mathematical and statistical tools, especially when a trading strategy is derived. Recent hype driven by machine learning (ML) mechanisms has raised the…

Risk Management · Quantitative Finance 2021-08-25 Bruno Spilak , Wolfgang Karl Härdle

In this paper, we develop a rigorous optimal control-theoretic approach to Transformer training that respects key structural constraints such as (i) realized-input-independence during execution, (ii) the ensemble control nature of the…

Machine Learning · Computer Science 2026-03-11 Kağan Akman , Naci Saldı , Serdar Yüksel

Stochastic policies (also known as relaxed controls) are widely used in continuous-time reinforcement learning algorithms. However, executing a stochastic policy and evaluating its performance in a continuous-time environment remain open…

Machine Learning · Computer Science 2025-10-03 Yanwei Jia , Du Ouyang , Yufei Zhang

A data-based policy for iterative control task is presented. The proposed strategy is model-free and can be applied whenever safe input and state trajectories of a system performing an iterative task are available. These trajectories,…

Systems and Control · Computer Science 2019-03-22 Ugo Rosolia , Xiaojing Zhang , Francesco Borrelli

The iterative weight update for the AdaBoost machine learning algorithm may be realized as a dynamical map on a probability simplex. When learning a low-dimensional data set this algorithm has a tendency towards cycling behavior, which is…

Machine Learning · Computer Science 2022-09-20 Conor Snedeker

The behavior decision-making subsystem is a key component of the autonomous driving system, which reflects the decision-making ability of the vehicle and the driver, and is an important symbol of the high-level intelligence of the vehicle.…

Machine Learning · Computer Science 2024-12-31 Zixiang Wang , Hao Yan , Changsong Wei , Junyu Wang , Minheng Xiao

Model-based reinforcement learning attempts to use an available or learned model to improve the data efficiency of reinforcement learning. This work proposes a one-step lookback approach that jointly learns the deep incremental model and…

Robotics · Computer Science 2025-02-28 Cong Li

Predictive models are often deployed through existing decision policies that stakeholders are reluctant to change unless a risk constraint requires intervention. We study risk-controlled post-processing: given a deterministic baseline…

Machine Learning · Statistics 2026-05-08 Sunay Joshi , Tao Wang , Hamed Hassani , Edgar Dobriban

The present paper deals with data-driven event-triggered control of a class of unknown discrete-time interconnected systems (a.k.a. network systems). To this end, we start by putting forth a novel distributed event-triggering transmission…

Systems and Control · Electrical Eng. & Systems 2023-09-15 Xin Wang , Jian Sun , Gang Wang , Frank Allgöwer , Jie Chen

Maximum drawdown, the largest cumulative loss from peak to trough, is one of the most widely used indicators of risk in the fund management industry, but one of the least developed in the context of measures of risk. We formalize drawdown…

Portfolio Management · Quantitative Finance 2016-09-22 Lisa R. Goldberg , Ola Mahmoud

This work recasts time-dependent optimal control problems governed by partial differential equations in a Dynamic Mode Decomposition with control framework. Indeed, since the numerical solution of such problems requires a lot of…

Optimization and Control · Mathematics 2022-03-25 Eleonora Donadini , Maria Strazzullo , Marco Tezzele , Gianluigi Rozza

This work presents a novel Learning Model Predictive Control (LMPC) strategy for autonomous racing at the handling limit that can iteratively explore and learn unknown dynamics in high-speed operational domains. We start from existing LMPC…

Robotics · Computer Science 2024-08-22 Haoru Xue , Edward L. Zhu , John M. Dolan , Francesco Borrelli

Model-based reinforcement learning algorithms tend to achieve higher sample efficiency than model-free methods. However, due to the inevitable errors of learned models, model-based methods struggle to achieve the same asymptotic performance…

Machine Learning · Computer Science 2019-12-02 Qi Zhou , Houqiang Li , Jie Wang

Data-driven control offers a powerful alternative to traditional model-based methods, particularly when accurate system models are unavailable or prohibitively complex. While existing data-driven control methods primarily aim to construct…

Systems and Control · Electrical Eng. & Systems 2026-01-12 Janina Schaa , Thomas Berger

We study how to unwind stochastic order flow with minimal transaction costs. Stochastic order flow arises, e.g., in the central risk book (CRB), a centralized trading desk that aggregates order flows within a financial institution. The desk…

Trading and Market Microstructure · Quantitative Finance 2025-11-14 Marcel Nutz , Kevin Webster , Long Zhao

We consider the problem of direct data-driven predictive control for unknown stochastic linear time-invariant (LTI) systems with partial state observation. Building upon our previous research on data-driven stochastic control, this paper…

Systems and Control · Electrical Eng. & Systems 2024-09-12 Ruiqi Li , John W. Simpson-Porco , Stephen L. Smith

Many recent proposals for reducing tanking in draft lotteries share a common structure: losses improve draft position early in the season while wins improve draft position later. While such systems improve late-season incentives, they…

Optimization and Control · Mathematics 2026-03-23 Bret Benesh

Stochastic resetting is a driving mechanism that is known to minimize the first passage time to reach a target, at the cost of energy expenditure. The choice of the physical implementation of each resetting event determines the tradeoff…

Statistical Mechanics · Physics 2025-07-29 Rémi Goerlich , Kristian Stølevik Olsen , Hartmut Löwen , Yael Roichman

This paper addresses the problem of learning the optimal control policy for a nonlinear stochastic dynamical system with continuous state space, continuous action space and unknown dynamics. This class of problems are typically addressed in…

Machine Learning · Computer Science 2019-04-18 Ran Wang , Karthikeya Parunandi , Dan Yu , Dileep Kalathil , Suman Chakravorty
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