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The retail banking services are one of the pillars of the modern economic growth. However, the evolution of the client's habits in modern societies and the recent European regulations promoting more competition mean the retail banks will…

Machine Learning · Computer Science 2019-11-27 Jeremy Charlier

Market making is a fundamental trading problem in which an agent provides liquidity by continually offering to buy and sell a security. The problem is challenging due to inventory risk, the risk of accumulating an unfavourable position and…

Artificial Intelligence · Computer Science 2018-04-13 Thomas Spooner , John Fearnley , Rahul Savani , Andreas Koukorinis

Finding tight bounds on the optimal solution is a critical element of practical solution methods for discrete optimization problems. In the last decade, decision diagrams (DDs) have brought a new perspective on obtaining upper and lower…

Artificial Intelligence · Computer Science 2019-02-28 Quentin Cappart , Emmanuel Goutierre , David Bergman , Louis-Martin Rousseau

The objective of a reinforcement learning agent is to discover better actions through exploration. However, typical exploration techniques aim to maximize rewards, often incurring high costs in both exploration and learning processes. We…

Machine Learning · Computer Science 2024-12-24 Akane Tsuboya , Yu Kono , Tatsuji Takahashi

Model-Free Reinforcement Learning has achieved meaningful results in stable environments but, to this day, it remains problematic in regime changing environments like financial markets. In contrast, model-based RL is able to capture some…

Machine Learning · Computer Science 2021-04-23 Eric Benhamou , David Saltiel , Serge Tabachnik , Sui Kai Wong , François Chareyron

This thesis presents the results of a comprehensive research project focused on applying Reinforcement Learning (RL) to the problem of market making in financial markets. Market makers (MMs) play a fundamental role in providing liquidity,…

Machine Learning · Computer Science 2025-07-28 Óscar Fernández Vicente

Straddle Option is a financial trading tool that explores volatility premiums in high-volatility markets without predicting price direction. Although deep reinforcement learning has emerged as a powerful approach to trading automation in…

General Finance · Quantitative Finance 2025-09-11 Yiran Wan , Xinyu Ying , Shengzhen Xu

We study a game between liquidity provider and liquidity taker agents interacting in an over-the-counter market, for which the typical example is foreign exchange. We show how a suitable design of parameterized families of reward functions…

Multiagent Systems · Computer Science 2023-08-02 Nelson Vadori , Leo Ardon , Sumitra Ganesh , Thomas Spooner , Selim Amrouni , Jared Vann , Mengda Xu , Zeyu Zheng , Tucker Balch , Manuela Veloso

We model short-duration (e.g. day) trading in financial markets as a sequential decision-making problem under uncertainty, with the added complication of continual concept-drift. We, therefore, employ meta reinforcement learning via the RL2…

Artificial Intelligence · Computer Science 2023-02-20 S I Harini , Gautam Shroff , Ashwin Srinivasan , Prayushi Faldu , Lovekesh Vig

Order Picker Routing is a critical issue in Warehouse Operations Management. Due to the complexity of the problem and the need for quick solutions, suboptimal algorithms are frequently employed in practice. However, Reinforcement Learning…

Machine Learning · Computer Science 2024-02-07 George Dunn , Hadi Charkhgard , Ali Eshragh , Sasan Mahmoudinazlou , Elizabeth Stojanovski

Deep reinforcement learning (RL) algorithms can learn complex policies to optimize agent operation over time. RL algorithms have shown promising results in solving complicated problems in recent years. However, their application on…

Machine Learning · Computer Science 2021-09-29 Hamed Khorasgani , Haiyan Wang , Chetan Gupta , Susumu Serita

Financial market forecasting remains a formidable challenge despite the surge in computational capabilities and machine learning advancements. While numerous studies have underscored the precision of computer-generated market predictions,…

Computational Finance · Quantitative Finance 2023-11-16 Reza Yarbakhsh , Mahdieh Soleymani Baghshah , Hamidreza Karimaghaie

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

Reinforcement learning serves as a potent tool for modeling dynamic user interests within recommender systems, garnering increasing research attention of late. However, a significant drawback persists: its poor data efficiency, stemming…

Information Retrieval · Computer Science 2023-08-23 Xiaocong Chen , Siyu Wang , Julian McAuley , Dietmar Jannach , Lina Yao

A wide variety of deep reinforcement learning (DRL) models have recently been proposed to learn profitable investment strategies. The rules learned by these models outperform the previous strategies specially in high frequency trading…

Statistical Finance · Quantitative Finance 2021-01-12 Mehran Taghian , Ahmad Asadi , Reza Safabakhsh

Financial trading aims to build profitable strategies to make wise investment decisions in the financial market. It has attracted interests in the machine learning community for a long time. This paper proposes to trade financial assets…

Trading and Market Microstructure · Quantitative Finance 2021-09-14 Lin Li

We propose using deep reinforcement learning to solve dynamic stochastic general equilibrium models. Agents are represented by deep artificial neural networks and learn to solve their dynamic optimisation problem by interacting with the…

Econometrics · Economics 2023-01-06 Mingli Chen , Andreas Joseph , Michael Kumhof , Xinlei Pan , Xuan Zhou

Recommending a sequence of activities for an ongoing case requires that the recommendations conform to the underlying business process and meet the performance goal of either completion time or process outcome. Existing work on next…

Artificial Intelligence · Computer Science 2022-05-09 Prerna Agarwal , Avani Gupta , Renuka Sindhgatta , Sampath Dechu

The use of artificial intelligence in supply chain forecasting has attracted many scientific studies for several decades. However, the process of selecting an appropriate forecasting solution becomes a daunting task. This complexity arises…

Machine Learning · Computer Science 2026-05-07 Bilel Abderrahmane Benziane , Benoit Lardeux , Ayoub Mcharek , Maher Jridi

Systems and machines undergo various failure modes that result in machine health degradation, so maintenance actions are required to restore them back to a state where they can perform their expected functions. Since maintenance tasks are…

Machine Learning · Computer Science 2023-07-11 Oluwaseyi Ogunfowora , Homayoun Najjaran