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Related papers: Reinforcement Learning for Jump-Diffusions, with F…

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Continuous-time stochastic control with time-inhomogeneous jump-diffusion dynamics is central in finance and economics, but computing optimal policies is difficult under explicit time dependence, discontinuous shocks, and high…

Optimization and Control · Mathematics 2026-04-08 Liya Guo , Ruimeng Hu , Xu Yang , Yi Zhu

Motivated by the trade-off between exploitation and exploration in reinforcement learning, we study a continuous-time entropy-regularized mean variance portfolio selection problem in the presence of jumps. We propose an exploratory SDE for…

Optimization and Control · Mathematics 2025-02-26 Christian Bender , Nguyen Tran Thuan

Offline reinforcement learning (RL) holds promise as a means to learn high-reward policies from a static dataset, without the need for further environment interactions. However, a key challenge in offline RL lies in effectively stitching…

Machine Learning · Computer Science 2023-09-14 Siddarth Venkatraman , Shivesh Khaitan , Ravi Tej Akella , John Dolan , Jeff Schneider , Glen Berseth

Many real-world control problems, ranging from finance to robotics, evolve in continuous time with non-uniform, event-driven decisions. Standard discrete-time reinforcement learning (RL), based on fixed-step Bellman updates, struggles in…

Machine Learning · Computer Science 2026-02-17 Minh Nguyen

This paper establishes a rigorous connection between regularized discrete-time reinforcement learning (RL) and continuous-time stochastic optimal control. Specifically, classical RL algorithms are typically solving a regularized…

Optimization and Control · Mathematics 2026-04-24 Huyên Pham , Yuming Paul Zhang , Yuhua Zhu

Thanks to their remarkable flexibility, diffusion models and flow models have emerged as promising candidates for policy representation. However, efficient reinforcement learning (RL) upon these policies remains a challenge due to the lack…

Machine Learning · Computer Science 2026-03-31 Chenxiao Gao , Edward Chen , Tianyi Chen , Bo Dai

We investigate an entropy-regularized reinforcement learning (RL) approach to optimal stopping problems motivated by real option models. Classical stopping rules are strict and non-randomized, limiting natural exploration in RL settings. To…

Optimization and Control · Mathematics 2026-02-18 Jodi Dianetti , Giorgio Ferrari , Renyuan Xu

We study a stochastic optimal control problem for jump-diffusion systems whose drift coefficient is piecewise Lipschitz continuous and exhibits threshold-induced discontinuities. Such dynamics naturally arise in applications with…

Optimization and Control · Mathematics 2026-05-08 Antoine-Marie Bogso , Edward Fuituh Kameh , Olivier Menoukeu-Pamen , Felix Shu

We study the problem of optimal portfolio selection under stochastic volatility within a continuous time reinforcement learning framework with portfolio constraints. Exploration is modeled through entropy-regularized relaxed controls, where…

Mathematical Finance · Quantitative Finance 2026-04-27 Thai Nguyen , Pertiny Nkuize

Recent advancements have shown that reinforcement learning (RL) can substantially improve the reasoning abilities of large language models (LLMs). The effectiveness of such RL training, however, depends critically on the exploration space…

Computation and Language · Computer Science 2026-03-17 Haoyuan Wu , Hai Wang , Jiajia Wu , Jinxiang Ou , Keyao Wang , Weile Chen , Zihao Zheng , Bei Yu

Learning a predictive model of the mean return, or value function, plays a critical role in many reinforcement learning algorithms. Distributional reinforcement learning (DRL) has been shown to improve performance by modeling the value…

Machine Learning · Computer Science 2025-07-08 Ju-Seung Byun , Andrew Perrault

In the ever-changing and intricate landscape of financial markets, portfolio optimisation remains a formidable challenge for investors and asset managers. Conventional methods often struggle to capture the complex dynamics of market…

Machine Learning · Statistics 2025-10-09 Himanshu Choudhary , Arishi Orra , Manoj Thakur

We approach the continuous-time mean-variance (MV) portfolio selection with reinforcement learning (RL). The problem is to achieve the best tradeoff between exploration and exploitation, and is formulated as an entropy-regularized, relaxed…

Portfolio Management · Quantitative Finance 2019-05-07 Haoran Wang , Xun Yu Zhou

We present a case study of model-free reinforcement learning (RL) framework to solve stochastic optimal control for a predefined parameter uncertainty distribution and partially observable system. We focus on robust optimal well control…

Machine Learning · Computer Science 2022-07-12 Atish Dixit , Ahmed H. ElSheikh

In this work, we study model-based reinforcement learning (RL) in unknown stabilizable linear dynamical systems. When learning a dynamical system, one needs to stabilize the unknown dynamics in order to avoid system blow-ups. We propose an…

Machine Learning · Computer Science 2022-06-06 Sahin Lale , Kamyar Azizzadenesheli , Babak Hassibi , Anima Anandkumar

Distributional reinforcement learning (DRL) enhances the understanding of the effects of the randomness in the environment by letting agents learn the distribution of a random return, rather than its expected value as in standard…

Optimization and Control · Mathematics 2024-03-26 Zifan Wang , Yulong Gao , Siyi Wang , Michael M. Zavlanos , Alessandro Abate , Karl H. Johansson

We study a regulation problem for stochastic systems subject to both continuous fluctuations and rare but significant shocks, modeled as a jump-diffusion with uncertainty in both the drift and the jump intensity. Such settings arise in…

Optimization and Control · Mathematics 2026-05-26 Abel Azze , Bernardo D'Auria , Giorgio Ferrari

In reinforcement learning (RL), it is often advantageous to consider additional constraints on the action space to ensure safety or action relevance. Existing work on such action-constrained RL faces challenges regarding effective policy…

Machine Learning · Computer Science 2025-12-01 Roland Stolz , Michael Eichelbeck , Matthias Althoff

This paper presents advanced techniques of training diffusion policies for offline reinforcement learning (RL). At the core is a mean-reverting stochastic differential equation (SDE) that transfers a complex action distribution into a…

Machine Learning · Computer Science 2025-01-09 Ruoqi Zhang , Ziwei Luo , Jens Sjölund , Thomas B. Schön , Per Mattsson

The realm of High-Frequency Trading (HFT) is characterized by rapid decision-making processes that capitalize on fleeting market inefficiencies. As the financial markets become increasingly competitive, there is a pressing need for…

Trading and Market Microstructure · Quantitative Finance 2023-11-21 Soumyadip Sarkar