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This paper bridges reinforcement learning (RL) and risk-sensitive stochastic control by introducing a tractable exploration mechanism for policy search in risk-sensitive portfolio management, with known and unknown model parameters, that…

Portfolio Management · Quantitative Finance 2026-03-03 Sebastien Lleo , Wolfgang Runggaldier

Our work focuses on deep learning (DL) portfolio optimization, tackling challenges in long-only, multi-asset strategies across market cycles. We propose training models with limited regime data using pre-training techniques and leveraging…

Portfolio Management · Quantitative Finance 2026-01-14 Brandon Luo , Jim Skufca

In this paper, we study the outage minimization problem in a decode-and-forward cooperative network with relay uncertainty. To reduce the outage probability and improve the quality of service, existing researches usually rely on the…

Information Theory · Computer Science 2022-05-19 Yuanzhe Geng , Erwu Liu , Rui Wang , Pengcheng Sun , Binyu Lu

Safe and efficient autonomous driving maneuvers in an interactive and complex environment can be considerably challenging due to the unpredictable actions of other surrounding agents that may be cooperative or adversarial in their…

Robotics · Computer Science 2019-01-28 Pin Wang , Ching-Yao Chan , Hanhan Li

Reinforcement learning (RL) is a powerful framework for optimal decision-making and control but often lacks provable guarantees for safety-critical applications. In this paper, we introduce a novel recovery-based shielding framework that…

Machine Learning · Computer Science 2026-02-18 Alexander W. Goodall , Francesco Belardinelli

Offline reinforcement learning (RL) looks at learning how to optimally solve tasks using a fixed dataset of interactions from the environment. Many off-policy algorithms developed for online learning struggle in the offline setting as they…

Machine Learning · Computer Science 2025-03-18 Natinael Solomon Neggatu , Jeremie Houssineau , Giovanni Montana

To obtain a near-optimal policy with fewer interactions in Reinforcement Learning (RL), a promising approach involves the combination of offline RL, which enhances sample efficiency by leveraging offline datasets, and online RL, which…

Machine Learning · Computer Science 2024-11-18 Xiaoyu Wen , Xudong Yu , Rui Yang , Haoyuan Chen , Chenjia Bai , Zhen Wang

We propose policy gradient algorithms for solving a risk-sensitive reinforcement learning (RL) problem in on-policy as well as off-policy settings. We consider episodic Markov decision processes, and model the risk using the broad class of…

Machine Learning · Computer Science 2024-06-25 Nithia Vijayan , Prashanth L. A

Decision making in uncertain and risky environments is a prominent area of research. Standard economic theories fail to fully explain human behaviour, while a potentially promising alternative may lie in the direction of Reinforcement…

Computational Engineering, Finance, and Science · Computer Science 2016-09-21 Alvin Pastore , Umberto Esposito , Eleni Vasilaki

Reliant on too many experiments to learn good actions, current Reinforcement Learning (RL) algorithms have limited applicability in real-world settings, which can be too expensive to allow exploration. We propose an algorithm for batch RL,…

Machine Learning · Computer Science 2021-12-07 Rasool Fakoor , Jonas Mueller , Kavosh Asadi , Pratik Chaudhari , Alexander J. Smola

Reinforcement learning (RL) commonly relies on scalar rewards with limited ability to express temporal, conditional, or safety-critical goals, and can lead to reward hacking. Temporal logic expressible via the more general class of…

Artificial Intelligence · Computer Science 2025-11-26 Dominik Wagner , Leon Witzman , Luke Ong

In this paper we show how risk-averse reinforcement learning can be used to hedge options. We apply a state-of-the-art risk-averse algorithm: Trust Region Volatility Optimization (TRVO) to a vanilla option hedging environment, considering…

Trading and Market Microstructure · Quantitative Finance 2020-10-26 Edoardo Vittori , Michele Trapletti , Marcello Restelli

This paper presents a model-free reinforcement learning (RL) algorithm to solve the risk-averse optimal control (RAOC) problem for discrete-time nonlinear systems. While successful RL algorithms have been presented to learn optimal control…

Systems and Control · Electrical Eng. & Systems 2021-03-29 Yuzhen Han , Majid Mazouchi , Subramanya Nageshrao , Hamidreza Modares

This paper studies tabular reinforcement learning (RL) in the hybrid setting, which assumes access to both an offline dataset and online interactions with the unknown environment. A central question boils down to how to efficiently utilize…

Machine Learning · Computer Science 2023-05-18 Gen Li , Wenhao Zhan , Jason D. Lee , Yuejie Chi , Yuxin Chen

We study continuous-time mean--variance portfolio selection in markets where stock prices are diffusion processes driven by observable factors that are also diffusion processes, yet the coefficients of these processes are unknown. Based on…

Portfolio Management · Quantitative Finance 2026-03-31 Yilie Huang , Yanwei Jia , Xun Yu Zhou

Real-world applications require RL algorithms to act safely. During learning process, it is likely that the agent executes sub-optimal actions that may lead to unsafe/poor states of the system. Exploration is particularly brittle in…

Machine Learning · Statistics 2019-06-17 Elena Smirnova , Elvis Dohmatob , Jérémie Mary

Reinforcement learning (RL) is a general and well-known method that a robot can use to learn an optimal control policy to solve a particular task. We would like to build a versatile robot that can learn multiple tasks, but using RL for each…

Artificial Intelligence · Computer Science 2015-12-01 Lisa Lee

Reinforcement Learning (RL) is a method for learning decision-making tasks that could enable robots to learn and adapt to their situation on-line. For an RL algorithm to be practical for robotic control tasks, it must learn in very few…

Artificial Intelligence · Computer Science 2015-03-19 Todd Hester , Michael Quinlan , Peter Stone

We introduce a sampling perspective to tackle the challenging task of training robust Reinforcement Learning (RL) agents. Leveraging the powerful Stochastic Gradient Langevin Dynamics, we present a novel, scalable two-player RL algorithm,…

Machine Learning · Computer Science 2020-11-09 Parameswaran Kamalaruban , Yu-Ting Huang , Ya-Ping Hsieh , Paul Rolland , Cheng Shi , Volkan Cevher

In this work, we address the problem of determining reliable policies in reinforcement learning (RL), with a focus on optimization under uncertainty and the need for performance guarantees. While classical RL algorithms aim at maximizing…

Machine Learning · Computer Science 2025-10-22 Nadir Farhi
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