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This work focuses on the dynamic hedging of financial derivatives, where a reinforcement learning algorithm is designed to minimize the variance of the delta hedging process. In contrast to previous research in this area, we apply…

Optimization and Control · Mathematics 2023-06-21 Cong Zheng , Jiafa He , Can Yang

In this thesis, we develop a comprehensive account of the expressive power, modelling efficiency, and performance advantages of so-called trading agents (i.e., Deep Soft Recurrent Q-Network (DSRQN) and Mixture of Score Machines (MSM)),…

Portfolio Management · Quantitative Finance 2019-09-23 Angelos Filos

In stock trading, feature extraction and trading strategy design are the two important tasks to achieve long-term benefits using machine learning techniques. Several methods have been proposed to design trading strategy by acquiring trading…

Trading and Market Microstructure · Quantitative Finance 2021-07-01 Supriya Bajpai

Optimized trade execution is to sell (or buy) a given amount of assets in a given time with the lowest possible trading cost. Recently, reinforcement learning (RL) has been applied to optimized trade execution to learn smarter policies from…

Trading and Market Microstructure · Quantitative Finance 2023-07-24 Chuheng Zhang , Yitong Duan , Xiaoyu Chen , Jianyu Chen , Jian Li , Li Zhao

Currently, reinforcement learning (RL), especially deep RL, has received more and more attention in the research area. However, the security of RL has been an obvious problem due to the attack manners becoming mature. In order to defend…

Machine Learning · Computer Science 2023-10-04 Jiarui Yao , Simon Shaolei Du

Reinforcement learning (RL) is a control approach that can handle nonlinear stochastic optimal control problems. However, despite the promise exhibited, RL has yet to see marked translation to industrial practice primarily due to its…

Machine Learning · Computer Science 2021-04-15 Elton Pan , Panagiotis Petsagkourakis , Max Mowbray , Dongda Zhang , Antonio del Rio-Chanona

Graph mining tasks arise from many different application domains, ranging from social networks, transportation to E-commerce, etc., which have been receiving great attention from the theoretical and algorithmic design communities in recent…

Machine Learning · Computer Science 2023-01-18 Mingshuo Nie , Dongming Chen , Dongqi Wang

This paper presents a review of the field of reinforcement learning (RL), with a focus on providing a comprehensive overview of the key concepts, techniques, and algorithms for beginners. RL has a unique setting, jargon, and mathematics…

Machine Learning · Computer Science 2023-04-04 Mohamed-Amine Chadi , Hajar Mousannif

This article is a gentle discussion about the field of reinforcement learning in practice, about opportunities and challenges, touching a broad range of topics, with perspectives and without technical details. The article is based on both…

Machine Learning · Computer Science 2022-04-25 Yuxi Li

Reinforcement learning (RL) has achieved remarkable success in real-world decision-making across diverse domains, including gaming, robotics, online advertising, public health, and natural language processing. Despite these advances, a…

Applications · Statistics 2026-01-23 Asim H. Gazi , Yongyi Guo , Daiqi Gao , Ziping Xu , Kelly W. Zhang , Susan A. Murphy

Ensemble models are powerful model building tools that are developed with a focus to improve the accuracy of model predictions. They find applications in time series forecasting in varied scenarios including but not limited to process…

In this thesis, we research learning algorithms for optimal decision making in two different contexts, Reinforcement Learning in Part I and Auction Design in Part II. Reinforcement learning (RL) is an area of machine learning that is…

Machine Learning · Computer Science 2022-10-07 Jad Rahme

The deployment of autonomous AI agents in derivatives markets has widened a practical gap between static model calibration and realized hedging outcomes. We introduce two reinforcement learning frameworks, a novel Replication Learning of…

Artificial Intelligence · Computer Science 2026-03-10 Minxuan Hu , Ziheng Chen , Jiayu Yi , Wenxi Sun

Reinforcement learning (RL) -- algorithms that teach artificial agents to interact with environments by maximising reward signals -- has achieved significant success in recent years. These successes have been facilitated by advances in…

Machine Learning · Computer Science 2025-04-03 Llewyn Salt , Marcus Gallagher

This paper focuses on reinforcement learning (RL) with limited prior knowledge. In the domain of swarm robotics for instance, the expert can hardly design a reward function or demonstrate the target behavior, forbidding the use of both…

Machine Learning · Computer Science 2012-08-07 Riad Akrour , Marc Schoenauer , Michèle Sebag

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

In this paper, we present a brief survey of Reinforcement Learning (RL), with particular emphasis on Stochastic Approximation (SA) as a unifying theme. The scope of the paper includes Markov Reward Processes, Markov Decision Processes,…

Machine Learning · Computer Science 2023-04-04 Mathukumalli Vidyasagar

In recent years, there has been a growing trend of applying Reinforcement Learning (RL) in financial applications. This approach has shown great potential to solve decision-making tasks in finance. In this survey, we present a comprehensive…

Computational Finance · Quantitative Finance 2024-11-21 Yahui Bai , Yuhe Gao , Runzhe Wan , Sheng Zhang , Rui Song

Reinforcement learning (RL) promises a framework for near-universal problem-solving. In practice however, RL algorithms are often tailored to specific benchmarks, relying on carefully tuned hyperparameters and algorithmic choices. Recently,…

Machine Learning · Computer Science 2025-01-28 Scott Fujimoto , Pierluca D'Oro , Amy Zhang , Yuandong Tian , Michael Rabbat

Given its intuitive nature, many Cloud providers opt for threshold-based data replication to enable automatic resource scaling. However, setting thresholds effectively needs human intervention to calibrate thresholds for each metric and…

Distributed, Parallel, and Cluster Computing · Computer Science 2024-10-17 Riad Mokadem , Fahem Arar , Djamel Eddine Zegour