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In financial applications, reinforcement learning (RL) agents are commonly trained on historical data, where their actions do not influence prices. However, during deployment, these agents trade in live markets where their own transactions…

Machine Learning · Computer Science 2026-01-27 Shaocong Ma , Heng Huang

Safety-critical robot systems need thorough testing to expose design flaws and software bugs which could endanger humans. Testing in simulation is becoming increasingly popular, as it can be applied early in the development process and does…

Reinforcement Learning (RL) algorithms are known to scale poorly to environments with many available actions, requiring numerous samples to learn an optimal policy. The traditional approach of considering the same fixed action space in…

Machine Learning · Computer Science 2023-05-15 Leo Ardon , Alberto Pozanco , Daniel Borrajo , Sumitra Ganesh

Reinforcement learning (RL) makes it possible to train agents capable of achieving sophisticated goals in complex and uncertain environments. A key difficulty in reinforcement learning is specifying a reward function for the agent to…

Machine Learning · Computer Science 2019-09-24 Bradly C. Stadie , Pieter Abbeel , Ilya Sutskever

The aim of inverse reinforcement learning (IRL) is to infer an agent's preferences from observing their behaviour. Usually, preferences are modelled as a reward function, $R$, and behaviour is modelled as a policy, $\pi$. One of the central…

Machine Learning · Computer Science 2024-12-17 Joar Skalse , Alessandro Abate

Reinforcement learning works best when the impact of the agent's actions on its environment can be perfectly simulated or fully appraised from available data. Some systems are however both hard to simulate and very sensitive to small…

Trading and Market Microstructure · Quantitative Finance 2025-01-30 Vincent Ragel , Damien Challet

Stock trading is one of the popular ways for financial management. However, the market and the environment of economy is unstable and usually not predictable. Furthermore, engaging in stock trading requires time and effort to analyze,…

Machine Learning · Computer Science 2025-05-20 Yunfei Luo , Zhangqi Duan

Imitation learning has proven effective for training robots to perform complex tasks from expert human demonstrations. However, it remains limited by its reliance on high-quality, task-specific data, restricting adaptability to the diverse…

In recent years, a wide range of investment models have been created using artificial intelligence. Automatic trading by artificial intelligence can expand the range of trading methods, such as by conferring the ability to operate 24 hours…

Trading and Market Microstructure · Quantitative Finance 2021-12-17 Koya Ishikawa , Kazuhide Nakata

Reinforcement Learning has emerged as a promising framework for developing adaptive and data-driven strategies, enabling market makers to optimize decision-making policies based on interactions with the limit order book environment. This…

Trading and Market Microstructure · Quantitative Finance 2026-02-17 Rafael Zimmer , Oswaldo Luiz do Valle Costa

Reinforcement learning (RL) combines a control problem with statistical estimation: The system dynamics are not known to the agent, but can be learned through experience. A recent line of research casts `RL as inference' and suggests a…

Machine Learning · Computer Science 2020-11-05 Brendan O'Donoghue , Ian Osband , Catalin Ionescu

Reinforcement learning (RL) techniques have shown great success in many challenging quantitative trading tasks, such as portfolio management and algorithmic trading. Especially, intraday trading is one of the most profitable and risky tasks…

Trading and Market Microstructure · Quantitative Finance 2022-08-23 Shuo Sun , Wanqi Xue , Rundong Wang , Xu He , Junlei Zhu , Jian Li , Bo An

In recent years, Reinforcement Learning (RL) is becoming a popular technique for training controllers for robots. However, for complex dynamic robot control tasks, RL-based method often produces controllers with unrealistic styles. In…

Robotics · Computer Science 2023-09-19 Xiang Zhu , Zixuan Chen , Jianyu Chen

Current reinforcement learning (RL) algorithms can be brittle and difficult to use, especially when learning goal-reaching behaviors from sparse rewards. Although supervised imitation learning provides a simple and stable alternative, it…

Machine Learning · Computer Science 2020-10-06 Dibya Ghosh , Abhishek Gupta , Ashwin Reddy , Justin Fu , Coline Devin , Benjamin Eysenbach , Sergey Levine

Reinforcement learning (RL) methods for social robot navigation show great success navigating robots through large crowds of people, but the performance of these learning-based methods tends to degrade in particularly challenging or…

Robotics · Computer Science 2024-08-14 Sara Pohland , Alvin Tan , Prabal Dutta , Claire Tomlin

Reinforcement learning (RL) algorithms allow agents to learn skills and strategies to perform complex tasks without detailed instructions or expensive labelled training examples. That is, RL agents can learn, as we learn. Given the…

Machine Learning · Computer Science 2019-01-25 Jung Hoon Lee

Optimal execution is a sequential decision-making problem for cost-saving in algorithmic trading. Studies have found that reinforcement learning (RL) can help decide the order-splitting sizes. However, a problem remains unsolved: how to…

Trading and Market Microstructure · Quantitative Finance 2022-07-25 Feiyang Pan , Tongzhe Zhang , Ling Luo , Jia He , Shuoling Liu

We build a profitable electronic trading agent with Reinforcement Learning that places buy and sell orders in the stock market. An environment model is built only with historical observational data, and the RL agent learns the trading…

Artificial Intelligence · Computer Science 2019-10-10 Haoran Wei , Yuanbo Wang , Lidia Mangu , Keith Decker

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

As algorithmic trading and electronic markets continue to transform the landscape of financial markets, detecting and deterring rogue agents to maintain a fair and efficient marketplace is crucial. The explosion of large datasets and the…

Trading and Market Microstructure · Quantitative Finance 2024-03-21 Kaushalya Kularatnam , Tania Stathaki