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Algorithmic trading refers to executing buy and sell orders for specific assets based on automatically identified trading opportunities. Strategies based on reinforcement learning (RL) have demonstrated remarkable capabilities in addressing…

Trading and Market Microstructure · Quantitative Finance 2024-07-03 Xi Cheng , Jinghao Zhang , Yunan Zeng , Wenfang Xue

In reinforcement learning, if the agent's reward differs from the designers' true utility, even only rarely, the state distribution resulting from the agent's policy can be very bad, in theory and in practice. When RL policies would devolve…

Machine Learning · Computer Science 2024-10-10 Michael K. Cohen , Marcus Hutter , Yoshua Bengio , Stuart Russell

We introduce the first end-to-end Deep Reinforcement Learning (DRL) based framework for active high frequency trading in the stock market. We train DRL agents to trade one unit of Intel Corporation stock by employing the Proximal Policy…

Machine Learning · Computer Science 2023-08-22 Antonio Briola , Jeremy Turiel , Riccardo Marcaccioli , Alvaro Cauderan , Tomaso Aste

Reinforcement learning (RL), a common tool in decision making, learns control policies from various experiences based on the associated cumulative return/rewards without treating them differently. Humans, on the contrary, often learn to…

Machine Learning · Computer Science 2025-11-25 Mingkang Wu , Devin White , Vernon Lawhern , Nicholas R. Waytowich , Yongcan Cao

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

We consider a setting for Inverse Reinforcement Learning (IRL) where the learner is extended with the ability to actively select multiple environments, observing an agent's behavior on each environment. We first demonstrate that if the…

Artificial Intelligence · Computer Science 2016-01-26 Kareem Amin , Satinder Singh

This paper presents a novel approach to e-commerce payment fraud detection by integrating reinforcement learning (RL) with Large Language Models (LLMs). By framing transaction risk as a multi-step Markov Decision Process (MDP), RL optimizes…

Machine Learning · Computer Science 2025-09-24 Bo Qu , Zhurong Wang , Daisuke Yagi , Zhen Xu , Yang Zhao , Yinan Shan , Frank Zahradnik

Reinforcement learning (RL) is gaining attention by more and more researchers in quantitative finance as the agent-environment interaction framework is aligned with decision making process in many business problems. Most of the current…

Mathematical Finance · Quantitative Finance 2022-05-31 Huifang Huang , Ting Gao , Yi Gui , Jin Guo , Peng Zhang

RL is increasingly being used to control robotic systems that interact closely with humans. This interaction raises the problem of safe RL: how to ensure that a RL-controlled robotic system never, for instance, injures a human. This problem…

Machine Learning · Computer Science 2023-02-03 Jack R. P. Hanslope , Laurence Aitchison

Artificial reinforcement learning (RL) is a widely used technique in artificial intelligence that provides a general method for training agents to perform a wide variety of behaviours. RL as used in computer science has striking parallels…

Artificial Intelligence · Computer Science 2014-10-31 Brian Tomasik

In this paper we propose a framework towards achieving two intertwined objectives: (i) equipping reinforcement learning with active exploration and deliberate information gathering, such that it regulates state and parameter uncertainties…

Machine Learning · Computer Science 2024-09-10 Mohammad S. Ramadan , Mahmoud A. Hayajnh , Michael T. Tolley , Kyriakos G. Vamvoudakis

The use of machine learning in algorithmic trading systems is increasingly common. In a typical set-up, supervised learning is used to predict the future prices of assets, and those predictions drive a simple trading and execution strategy.…

Machine Learning · Computer Science 2023-07-19 Vikram Duvvur , Aashay Mehta , Edward Sun , Bo Wu , Ken Yew Chan , Jeff Schneider

With the breakthrough of computational power and deep neural networks, many areas that we haven't explore with various techniques that was researched rigorously in past is feasible. In this paper, we will walk through possible concepts to…

Computational Finance · Quantitative Finance 2017-07-25 David W. Lu

Machine learning techniques applied to the problem of financial market forecasting struggle with dynamic regime switching, or underlying correlation and covariance shifts in true (hidden) market variables. Drawing inspiration from the…

Computational Finance · Quantitative Finance 2024-06-25 Raeid Saqur

Reinforcement learning in complex environments may require supervision to prevent the agent from attempting dangerous actions. As a result of supervisor intervention, the executed action may differ from the action specified by the policy.…

Artificial Intelligence · Computer Science 2021-07-01 Eric D. Langlois , Tom Everitt

During training, reinforcement learning systems interact with the world without considering the safety of their actions. When deployed into the real world, such systems can be dangerous and cause harm to their surroundings. Often, dangerous…

Artificial Intelligence · Computer Science 2022-12-29 Ekaterina Nikonova , Cheng Xue , Jochen Renz

E-commerce platforms and payment solution providers face increasingly sophisticated fraud schemes, ranging from identity theft and account takeovers to complex money laundering operations that exploit the speed and anonymity of digital…

Artificial Intelligence · Computer Science 2026-01-12 Cooper Lin , Yanting Zhang , Maohao Ran , Wei Xue , Hongwei Fan , Yibo Xu , Zhenglin Wan , Sirui Han , Yike Guo , Jun Song

Social learning is a key component of human and animal intelligence. By taking cues from the behavior of experts in their environment, social learners can acquire sophisticated behavior and rapidly adapt to new circumstances. This paper…

Machine Learning · Computer Science 2021-06-24 Kamal Ndousse , Douglas Eck , Sergey Levine , Natasha Jaques

Data-driven learning-based control methods such as reinforcement learning (RL) have become increasingly popular with recent proliferation of the machine learning paradigm. These methods address the parameter sensitiveness and unmodeled…

Systems and Control · Electrical Eng. & Systems 2023-12-08 Yihao Wan , Qianwen Xu , Tomislav Dragičević

Both entropy-minimizing and entropy-maximizing (curiosity) objectives for unsupervised reinforcement learning (RL) have been shown to be effective in different environments, depending on the environment's level of natural entropy. However,…

Machine Learning · Computer Science 2024-08-19 Adriana Hugessen , Roger Creus Castanyer , Faisal Mohamed , Glen Berseth
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