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Can an asset manager plan the optimal timing for her/his hedging strategies given market conditions? The standard approach based on Markowitz or other more or less sophisticated financial rules aims to find the best portfolio allocation…

Portfolio Management · Quantitative Finance 2020-11-10 Eric Benhamou , David Saltiel , Sandrine Ungari , Abhishek Mukhopadhyay

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

Reinforcement learning (RL) based investment strategies have been widely adopted in portfolio management (PM) in recent years. Nevertheless, most RL-based approaches may often emphasize on pursuing returns while ignoring the risks of the…

Portfolio Management · Quantitative Finance 2023-06-13 Zhenglong Li , Hejun Huang , Vincent Tam

The objective in a traditional reinforcement learning (RL) problem is to find a policy that optimizes the expected value of a performance metric such as the infinite-horizon cumulative discounted or long-run average cost/reward. In…

Machine Learning · Computer Science 2022-05-25 Prashanth L. A. , Michael Fu

Envisioned application areas for reinforcement learning (RL) include autonomous driving, precision agriculture, and finance, which all require RL agents to make decisions in the real world. A significant challenge hindering the adoption of…

Machine Learning · Computer Science 2025-01-20 Dominik Baumann , Erfaun Noorani , James Price , Ole Peters , Colm Connaughton , Thomas B. Schön

Reinforcement learning (RL) agents are vulnerable to adversarial disturbances, which can deteriorate task performance or compromise safety specifications. Existing methods either address safety requirements under the assumption of no…

Machine Learning · Computer Science 2023-09-14 Zeyang Li , Chuxiong Hu , Yunan Wang , Yujie Yang , Shengbo Eben Li

Modern navigation algorithms based on deep reinforcement learning (RL) show promising efficiency and robustness. However, most deep RL algorithms operate in a risk-neutral manner, making no special attempt to shield users from relatively…

Machine Learning · Computer Science 2021-04-12 Jinyoung Choi , Christopher R. Dance , Jung-eun Kim , Seulbin Hwang , Kyung-sik Park

In dynamic programming (DP) and reinforcement learning (RL), an agent learns to act optimally in terms of expected long-term return by sequentially interacting with its environment modeled by a Markov decision process (MDP). More generally…

Machine Learning · Computer Science 2022-01-03 Mastane Achab , Gergely Neu

Reinforcement Learning (RL) is essentially a trial-and-error learning procedure which may cause unsafe behavior during the exploration-and-exploitation process. This hinders the application of RL to real-world control problems, especially…

Machine Learning · Computer Science 2021-05-03 Yutong Li , Nan Li , H. Eric Tseng , Anouck Girard , Dimitar Filev , Ilya Kolmanovsky

Robust reinforcement learning (RL) aims to learn policies that remain effective despite uncertainties in its environment, which frequently arise in real-world applications due to variations in environment dynamics. The robust RL methods…

Machine Learning · Computer Science 2025-05-30 Linh Le Pham Van , Minh Hoang Nguyen , Hung Le , Hung The Tran , Sunil Gupta

Offline reinforcement-learning (RL) algorithms learn to make decisions using a given, fixed training dataset without online data collection. This problem setting is captivating because it holds the promise of utilizing previously collected…

Machine Learning · Computer Science 2022-12-07 Dan Elbaz , Gal Novik , Oren Salzman

The robustness of legged locomotion is crucial for quadrupedal robots in challenging terrains. Recently, Reinforcement Learning (RL) has shown promising results in legged locomotion and various methods try to integrate privileged…

Robotics · Computer Science 2023-09-04 Jiyuan Shi , Chenjia Bai , Haoran He , Lei Han , Dong Wang , Bin Zhao , Mingguo Zhao , Xiu Li , Xuelong Li

Reinforcement learning (RL) is an innovative approach to financial decision making, offering specialized solutions to complex investment problems where traditional methods fail. This review analyzes 167 articles from 2017--2025, focusing on…

Computational Finance · Quantitative Finance 2025-12-12 Mohammad Rezoanul Hoque , Md Meftahul Ferdaus , M. Kabir Hassan

In real-world tasks, reinforcement learning (RL) agents frequently encounter situations that are not present during training time. To ensure reliable performance, the RL agents need to exhibit robustness against worst-case situations. The…

Machine Learning · Computer Science 2021-03-19 Sebastian Curi , Ilija Bogunovic , Andreas Krause

Reinforcement Learning (RL) has been shown to be effective in many scenarios. However, it typically requires the exploration of a sufficiently large number of state-action pairs, some of which may be unsafe. Consequently, its application to…

Systems and Control · Electrical Eng. & Systems 2022-06-24 Yousef Emam , Gennaro Notomista , Paul Glotfelter , Zsolt Kira , Magnus Egerstedt

Safe reinforcement learning (RL) seeks to mitigate unsafe behaviors that arise from exploration during training by reducing constraint violations while maintaining task performance. Existing approaches typically rely on a single policy to…

Robotics · Computer Science 2026-05-12 Murad Dawood , Usama Ahmed Siddiquie , Shahram Khorshidi , Maren Bennewitz

Offline reinforcement learning (RL) is suitable for safety-critical domains where online exploration is too costly or dangerous. In such safety-critical settings, decision-making should take into consideration the risk of catastrophic…

Machine Learning · Computer Science 2023-10-31 Marc Rigter , Bruno Lacerda , Nick Hawes

Robust planning in interactive scenarios requires predicting the uncertain future to make risk-aware decisions. Unfortunately, due to long-tail safety-critical events, the risk is often under-estimated by finite-sampling approximations of…

Machine Learning · Computer Science 2023-01-13 Haruki Nishimura , Jean Mercat , Blake Wulfe , Rowan McAllister , Adrien Gaidon

Continual reinforcement learning (continual RL) seeks to formalize the notions of lifelong learning and endless adaptation in RL. In particular, the aim of continual RL is to develop RL agents that can maintain a careful balance between…

Machine Learning · Computer Science 2026-05-05 Juan Sebastian Rojas , Chi-Guhn Lee

In risk-averse reinforcement learning (RL), the goal is to optimize some risk measure of the returns. A risk measure often focuses on the worst returns out of the agent's experience. As a result, standard methods for risk-averse RL often…

Machine Learning · Computer Science 2022-10-13 Ido Greenberg , Yinlam Chow , Mohammad Ghavamzadeh , Shie Mannor