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Quantum machine learning has the potential for a transformative impact across industry sectors and in particular in finance. In our work we look at the problem of hedging where deep reinforcement learning offers a powerful framework for…

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

This paper presents an innovative online portfolio selection model, situated within a meta-learning framework, that leverages a mixture policies strategy. The core idea is to simulate a fund that employs multiple fund managers, each skilled…

Optimization and Control · Mathematics 2025-05-13 Jiayu Shen , Jia Liu , Zhiping Chen

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

Full electronic automation in stock exchanges has recently become popular, generating high-frequency intraday data and motivating the development of near real-time price forecasting methods. Machine learning algorithms are widely applied to…

Applications · Statistics 2023-03-29 Xuekui Zhang , Yuying Huang , Ke Xu , Li Xing

Deep learning is rapidly becoming a go-to tool for many artificial intelligence problems due to its ability to outperform other approaches and even humans at many problems. Despite its popularity we are still unable to accurately predict…

Machine Learning · Computer Science 2018-11-30 Daniel Justus , John Brennan , Stephen Bonner , Andrew Stephen McGough

Business analytics refers to methods and practices that create value through data for individuals, firms, and organizations. This field is currently experiencing a radical shift due to the advent of deep learning: deep neural networks…

Machine Learning · Computer Science 2019-09-13 Mathias Kraus , Stefan Feuerriegel , Asil Oztekin

Predictive monitoring of business processes is concerned with the prediction of ongoing cases on a business process. Lately, the popularity of deep learning techniques has propitiated an ever-growing set of approaches focused on predictive…

Machine Learning · Computer Science 2021-11-01 Efrén Rama-Maneiro , Juan C. Vidal , Manuel Lama

Accurate crude oil price forecasting is crucial for various economic activities, including energy trading, risk management, and investment planning. Although deep learning models have emerged as powerful tools for crude oil price…

Machine Learning · Computer Science 2024-12-17 Mohammed Alruqimi , Luca Di Persio

To predict the future movements of stock markets, numerous studies concentrate on daily data and employ various machine learning (ML) models as benchmarks that often vary and lack standardization across different research works. This paper…

Computational Finance · Quantitative Finance 2024-07-16 Han Gui

This paper presents a machine learning approach for tuning the parameters of a family of stabilizing controllers for orbital tracking. An augmented random search algorithm is deployed, which aims at minimizing a cost function combining…

Systems and Control · Electrical Eng. & Systems 2023-08-08 Gianni Bianchini , Andrea Garulli , Antonio Giannitrapani , Mirko Leomanni , Renato Quartullo

Reinforcement learning is a machine learning approach concerned with solving dynamic optimization problems in an almost model-free way by maximizing a reward function in state and action spaces. This property makes it an exciting area of…

Portfolio Management · Quantitative Finance 2020-10-12 Miquel Noguer i Alonso , Sonam Srivastava

We present results demonstrating that an appropriately configured deep learning neural network (DLNN) can automatically learn to be a high-performing algorithmic trading system, operating purely from training-data inputs generated by…

Trading and Market Microstructure · Quantitative Finance 2020-12-03 Aaron Wray , Matthew Meades , Dave Cliff

Portfolio traders strive to identify dynamic portfolio allocation schemes so that their total budgets are efficiently allocated through the investment horizon. This study proposes a novel portfolio trading strategy in which an intelligent…

Portfolio Management · Quantitative Finance 2019-12-02 Hyungjun Park , Min Kyu Sim , Dong Gu Choi

Predicting business process behaviour is an important aspect of business process management. Motivated by research in natural language processing, this paper describes an application of deep learning with recurrent neural networks to the…

Machine Learning · Computer Science 2017-05-05 Joerg Evermann , Jana-Rebecca Rehse , Peter Fettke

In recent years, the state-of-the-art in deep learning has been dominated by very large models that have been pre-trained on vast amounts of data. The paradigm is very simple: investing more computational resources (optimally) leads to…

Machine Learning · Computer Science 2024-05-24 Sotiris Anagnostidis , Gregor Bachmann , Imanol Schlag , Thomas Hofmann

This work studies the deep learning-based numerical algorithms for optimal hedging problems in markets with general convex transaction costs on the trading rates, focusing on their scalability of trading time horizon. Based on the…

Mathematical Finance · Quantitative Finance 2022-12-29 Xiaofei Shi , Daran Xu , Zhanhao Zhang

Portfolio management via reinforcement learning is at the forefront of fintech research, which explores how to optimally reallocate a fund into different financial assets over the long term by trial-and-error. Existing methods are…

Artificial Intelligence · Computer Science 2021-02-09 Rundong Wang , Hongxin Wei , Bo An , Zhouyan Feng , Jun Yao

We present a scalable post-processing algorithm for debiasing trained models, including deep neural networks (DNNs), which we prove to be near-optimal by bounding its excess Bayes risk. We empirically validate its advantages on standard…

Machine Learning · Computer Science 2022-08-24 Ibrahim Alabdulmohsin , Mario Lucic

Gradient-based optimization has been critical to the success of machine learning, updating a single set of parameters to minimize a single loss. A growing number of applications rely on a generalization of this, where we have a bilevel or…

Machine Learning · Computer Science 2024-07-02 Jonathan Lorraine