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Deep reinforcement learning (DRL) has been widely studied in the portfolio management task. However, it is challenging to understand a DRL-based trading strategy because of the black-box nature of deep neural networks. In this paper, we…

Portfolio Management · Quantitative Finance 2021-12-21 Mao Guan , Xiao-Yang Liu

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

We study the discrete-time linear-quadratic (LQ) control model using reinforcement learning (RL). Using entropy to measure the cost of exploration, we prove that the optimal feedback policy for the problem must be Gaussian type. Then, we…

Machine Learning · Statistics 2025-02-05 Lucky Li

This paper mainly investigates reflected stochastic recursive control problems governed by jump-diffusion dynamics. The system's state evolution is described by a stochastic differential equation driven by both Brownian motion and Poisson…

Optimization and Control · Mathematics 2025-05-15 Lu Liu , Qingmeng Wei

This paper aims to develop and provide a rigorous treatment to the problem of entropy regularized fine-tuning in the context of continuous-time diffusion models, which was recently proposed by Uehara et al. (arXiv:2402.15194, 2024). The…

Optimization and Control · Mathematics 2025-09-25 Wenpin Tang , Fuzhong Zhou

Reinforcement learning (RL) provides a theoretical framework for continuously improving an agent's behavior via trial and error. However, efficiently learning policies from scratch can be very difficult, particularly for tasks with…

Unsupervised reinforcement learning (RL) studies how to leverage environment statistics to learn useful behaviors without the cost of reward engineering. However, a central challenge in unsupervised RL is to extract behaviors that…

In a reinforcement learning (RL) framework, we study the exploratory version of the continuous time expected utility (EU) maximization problem with a portfolio constraint that includes widely-used financial regulations such as short-selling…

Mathematical Finance · Quantitative Finance 2024-12-17 Huy Chau , Duy Nguyen , Thai Nguyen

We propose a reinforcement learning (RL) framework under a broad class of risk objectives, characterized by convex scoring functions. This class covers many common risk measures, such as variance, Expected Shortfall, entropic Value-at-Risk,…

Mathematical Finance · Quantitative Finance 2025-05-16 Shanyu Han , Yang Liu , Xiang Yu

Mathematical and computational tools have proven to be reliable in decision-making processes. In recent times, in particular, machine learning-based methods are becoming increasingly popular as advanced support tools. When dealing with…

Optimization and Control · Mathematics 2024-02-23 Christina Schenk , Aditya Vasudevan , Maciej Haranczyk , Ignacio Romero

This article studies a portfolio optimization problem, where the market consisting of several stocks is modeled by a multi-dimensional jump-diffusion process with age-dependent semi-Markov modulated coefficients. We study risk sensitive…

Portfolio Management · Quantitative Finance 2019-10-21 Milan Kumar Das , Anindya Goswami , Nimit Rana

Commonly in reinforcement learning (RL), rewards are discounted over time using an exponential function to model time preference, thereby bounding the expected long-term reward. In contrast, in economics and psychology, it has been shown…

Machine Learning · Computer Science 2022-12-08 Matthias Schultheis , Constantin A. Rothkopf , Heinz Koeppl

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

Reinforcement learning (RL) is an innovative approach to financial decision making, offering specialized solutions to complex investment problems where traditional methods fail. This review analyzes 167 articles from 2017--2025, focusing on…

Computational Finance · Quantitative Finance 2025-12-12 Mohammad Rezoanul Hoque , Md Meftahul Ferdaus , M. Kabir Hassan

In reinforcement learning (RL) algorithms, exploratory control inputs are used during learning to acquire knowledge for decision making and control, while the true dynamics of a controlled object is unknown. However, this exploring property…

Machine Learning · Computer Science 2021-03-08 Yoshihiro Okawa , Tomotake Sasaki , Hidenao Iwane

Popular reinforcement learning (RL) algorithms tend to produce a unimodal policy distribution, which weakens the expressiveness of complicated policy and decays the ability of exploration. The diffusion probability model is powerful to…

Machine Learning · Computer Science 2023-05-23 Long Yang , Zhixiong Huang , Fenghao Lei , Yucun Zhong , Yiming Yang , Cong Fang , Shiting Wen , Binbin Zhou , Zhouchen Lin

Diffusion Models (DMs), as a leading class of generative models, offer key advantages for reinforcement learning (RL), including multi-modal expressiveness, stable training, and trajectory-level planning. This survey delivers a…

Machine Learning · Computer Science 2025-10-15 Changfu Xu , Jianxiong Guo , Yuzhu Liang , Haiyang Huang , Haodong Zou , Xi Zheng , Shui Yu , Xiaowen Chu , Jiannong Cao , Tian Wang

We study the problem of learning the optimal control policy for fine-tuning a given diffusion process, using general value function approximation. We develop a new class of algorithms by solving a variational inequality problem based on the…

Machine Learning · Computer Science 2025-09-03 Wenlong Mou

Offline reinforcement learning (RL) extends the paradigm of classical RL algorithms to purely learning from static datasets, without interacting with the underlying environment during the learning process. A key challenge of offline RL is…

Machine Learning · Computer Science 2022-06-16 Shentao Yang , Yihao Feng , Shujian Zhang , Mingyuan Zhou

Constrained reinforcement learning (RL) seeks high-performance policies under safety constraints. We focus on an offline setting where the agent has only a fixed dataset -- common in realistic tasks to prevent unsafe exploration. To address…

Machine Learning · Computer Science 2025-09-08 Junyu Guo , Zhi Zheng , Donghao Ying , Ming Jin , Shangding Gu , Costas Spanos , Javad Lavaei
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