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This paper explores the application of deep Q-learning to hedging at-the-money options on the S\&P~500 index. We develop an agent based on the Twin Delayed Deep Deterministic Policy Gradient (TD3) algorithm, trained to simulate hedging…

Computational Finance · Quantitative Finance 2025-10-13 Zofia Bracha , Paweł Sakowski , Jakub Michańków

Financial trading has been widely analyzed for decades with market participants and academics always looking for advanced methods to improve trading performance. Deep reinforcement learning (DRL), a recently reinvigorated method with…

Trading and Market Microstructure · Quantitative Finance 2021-06-17 Ali Hirsa , Joerg Osterrieder , Branka Hadji-Misheva , Jan-Alexander Posth

Recent advances in Reinforcement Learning, grounded on combining classical theoretical results with Deep Learning paradigm, led to breakthroughs in many artificial intelligence tasks and gave birth to Deep Reinforcement Learning (DRL) as a…

Machine Learning · Computer Science 2019-07-09 Sergey Ivanov , Alexander D'yakonov

Engineering desired Hamiltonian in quantum many-body systems is essential for applications such as quantum simulation, computation and sensing. Conventional quantum Hamiltonian engineering sequences are designed using human intuition based…

Quantum Physics · Physics 2022-11-17 Pai Peng , Xiaoyang Huang , Chao Yin , Linta Joseph , Chandrasekhar Ramanathan , Paola Cappellaro

The rapid changes in the finance industry due to the increasing amount of data have revolutionized the techniques on data processing and data analysis and brought new theoretical and computational challenges. In contrast to classical…

Mathematical Finance · Quantitative Finance 2023-03-01 Ben Hambly , Renyuan Xu , Huining Yang

Scheduling plays a pivotal role in multi-user wireless communications, since the quality of service of various users largely depends upon the allocated radio resources. In this paper, we propose a novel scheduling algorithm with contiguous…

Networking and Internet Architecture · Computer Science 2020-11-30 Shu Sun , Xiaofeng Li

Recent years have witnessed the successful marriage of finance innovations and AI techniques in various finance applications including quantitative trading (QT). Despite great research efforts devoted to leveraging deep learning (DL)…

Trading and Market Microstructure · Quantitative Finance 2019-08-08 Jingyuan Wang , Yang Zhang , Ke Tang , Junjie Wu , Zhang Xiong

Deep Reinforcement Learning (DRL) has emerged as an efficient approach to resource allocation due to its strong capability in handling complex decision-making tasks. However, only limited research has explored the training of DRL models…

Machine Learning · Computer Science 2025-09-23 Aohan Li , Miyu Tsuzuki

The automated mining of predictive signals, or alphas, is a central challenge in quantitative finance. While Reinforcement Learning (RL) has emerged as a promising paradigm for generating formulaic alphas, existing frameworks are…

Computational Finance · Quantitative Finance 2026-05-20 Binqi Chen , Hongjun Ding , Ning Shen , Jinsheng Huang , Taian Guo , Luchen Liu , Ming Zhang

Deep Reinforcement Learning (DRL) aims to create intelligent agents that can learn to solve complex problems efficiently in a real-world environment. Typically, two learning goals: adaptation and generalization are used for baselining DRL…

Machine Learning · Computer Science 2022-02-18 Pamul Yadav , Ashutosh Mishra , Junyong Lee , Shiho Kim

Reinforcement learning (RL) has shown significant promise for sequential portfolio optimization tasks, such as stock trading, where the objective is to maximize cumulative returns while minimizing risks using historical data. However,…

Machine Learning · Computer Science 2025-05-20 Haochen Yuan , Minting Pan , Yunbo Wang , Siyu Gao , Philip S. Yu , Xiaokang Yang

This article develops a deep reinforcement learning (Deep-RL) framework for dynamic pricing on managed lanes with multiple access locations and heterogeneity in travelers' value of time, origin, and destination. This framework relaxes…

Systems and Control · Electrical Eng. & Systems 2021-01-28 Venktesh Pandey , Evana Wang , Stephen D. Boyles

We explore deep Reinforcement Learning(RL) algorithms for scalping trading and knew that there is no appropriate trading gym and agent examples. Thus we propose gym and agent like Open AI gym in finance. Not only that, we introduce new RL…

Artificial Intelligence · Computer Science 2019-04-02 Uk Jo , Taehyun Jo , Wanjun Kim , Iljoo Yoon , Dongseok Lee , Seungho Lee

Effective cross-functional coordination is essential for enhancing firm-wide profitability, particularly in the face of growing organizational complexity and scale. Recent advances in artificial intelligence, especially in reinforcement…

Artificial Intelligence · Computer Science 2025-10-07 Jinyang Jiang , Jinhui Han , Yijie Peng , Ying Zhang

In recent years some researchers have explored the use of reinforcement learning (RL) algorithms as key components in the solution of various natural language processing tasks. For instance, some of these algorithms leveraging deep neural…

Computation and Language · Computer Science 2026-04-29 Victor Uc-Cetina , Nicolas Navarro-Guerrero , Anabel Martin-Gonzalez , Cornelius Weber , Stefan Wermter

Federated Learning (FL) is a distributed framework for collaborative model training over large-scale distributed data, enabling higher performance while maintaining client data privacy. However, the nature of model aggregation at the…

Machine Learning · Computer Science 2025-06-10 Ali Murad , Bo Hui , Wei-Shinn Ku

The combination of Reinforcement Learning (RL) with deep learning has led to a series of impressive feats, with many believing (deep) RL provides a path towards generally capable agents. However, the success of RL agents is often highly…

Nowadays, a significant share of the business-to-consumer sector is based on online platforms like Amazon and Alibaba and uses AI for pricing strategies. This has sparked debate on whether pricing algorithms may tacitly collude to set…

General Economics · Economics 2025-03-17 Shidi Deng , Maximilian Schiffer , Martin Bichler

Reinforcement learning (RL) has demonstrated potential for enhancing reasoning in large language models (LLMs). However, effective RL training, which requires medium-difficulty training samples, faces two fundamental challenges: Effective…

Machine Learning · Computer Science 2026-05-19 Ru Zhang , Renda Li , Ziyu Ma , Weijie Qiu , Chongyang Tao , Yong Wang , Xiangxiang Chu

Optimal Order Execution is a well-established problem in finance that pertains to the flawless execution of a trade (buy or sell) for a given volume within a specified time frame. This problem revolves around optimizing returns while…

Computational Finance · Quantitative Finance 2026-01-13 Khabbab Zakaria , Jayapaulraj Jerinsh , Andreas Maier , Patrick Krauss , Stefano Pasquali , Dhagash Mehta