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Algorithmic stock trading has become a staple in today's financial market, the majority of trades being now fully automated. Deep Reinforcement Learning (DRL) agents proved to be to a force to be reckon with in many complex games like Chess…

Machine Learning · Computer Science 2021-06-02 Tidor-Vlad Pricope

We present a parsimonious neural network approach, which does not rely on dynamic programming techniques, to solve dynamic portfolio optimization problems subject to multiple investment constraints. The number of parameters of the…

Computational Finance · Quantitative Finance 2023-03-17 Pieter M. van Staden , Peter A. Forsyth , Yuying Li

This scientific research paper presents an innovative approach based on deep reinforcement learning (DRL) to solve the algorithmic trading problem of determining the optimal trading position at any point in time during a trading activity in…

Trading and Market Microstructure · Quantitative Finance 2022-06-06 Thibaut Théate , Damien Ernst

The artificial segmentation of an investment management process into a workflow with silos of offline human operators can restrict silos from collectively and adaptively pursuing a unified optimal investment goal. To meet the investor's…

Portfolio Management · Quantitative Finance 2020-09-08 Andrew Paskaramoorthy , Terence van Zyl , Tim Gebbie

Deep Reinforcement Learning (DRL) algorithms have recently made significant strides in improving network performance. Nonetheless, their practical use is still limited in the absence of safe exploration and safe decision-making. In the…

Networking and Internet Architecture · Computer Science 2024-01-12 Lam Dinh , Pham Tran Anh Quang , Jérémie Leguay

With the increasing power of computers and the rapid development of self-learning methodologies such as machine learning and artificial intelligence, the problem of constructing an automatic Financial Trading Systems (FTFs) becomes an…

Trading and Market Microstructure · Quantitative Finance 2019-08-29 Haoqian Li , Thomas Lau

Deep Reinforcement Learning (DRL) is being used in many domains. One of the biggest advantages of DRL is that it enables the continuous improvement of a learning agent. Secondly, the DRL framework is robust and flexible enough to be…

Machine Learning · Computer Science 2022-05-05 Muhammad Usman Awais

This thesis presents the results of a comprehensive research project focused on applying Reinforcement Learning (RL) to the problem of market making in financial markets. Market makers (MMs) play a fundamental role in providing liquidity,…

Machine Learning · Computer Science 2025-07-28 Óscar Fernández Vicente

Performance forecasting is an age-old problem in economics and finance. Recently, developments in machine learning and neural networks have given rise to non-linear time series models that provide modern and promising alternatives to…

Statistical Finance · Quantitative Finance 2022-01-21 Carmina Fjellström

Finance is a particularly difficult playground for deep reinforcement learning. However, establishing high-quality market environments and benchmarks for financial reinforcement learning is challenging due to three major factors, namely,…

Trading and Market Microstructure · Quantitative Finance 2022-11-08 Xiao-Yang Liu , Ziyi Xia , Jingyang Rui , Jiechao Gao , Hongyang Yang , Ming Zhu , Christina Dan Wang , Zhaoran Wang , Jian Guo

Stock return forecasting is a major component of numerous finance applications. Predicted stock returns can be incorporated into portfolio trading algorithms to make informed buy or sell decisions which can optimize returns. In such…

Portfolio Management · Quantitative Finance 2024-10-23 Zimeng Lyu , Amulya Saxena , Rohaan Nadeem , Hao Zhang , Travis Desell

We propose to solve large scale Markowitz mean-variance (MV) portfolio allocation problem using reinforcement learning (RL). By adopting the recently developed continuous-time exploratory control framework, we formulate the exploratory MV…

Portfolio Management · Quantitative Finance 2019-08-05 Haoran Wang

When faced with a new customer, many factors contribute to an insurance firm's decision of what offer to make to that customer. In addition to the expected cost of providing the insurance, the firm must consider the other offers likely to…

Machine Learning · Computer Science 2024-08-05 Edward James Young , Alistair Rogers , Elliott Tong , James Jordon

Financial market prediction and optimal trading strategy development remain challenging due to market complexity and volatility. Our research in quantum finance and reinforcement learning for decision-making demonstrates the approach of…

Quantum Physics · Physics 2025-01-24 Siddhant Dutta , Nouhaila Innan , Alberto Marchisio , Sadok Ben Yahia , Muhammad Shafique

Modern machine learning models (such as deep neural networks and boosting decision tree models) have become increasingly popular in financial market prediction, due to their superior capacity to extract complex non-linear patterns. However,…

Machine Learning · Computer Science 2021-02-02 Chuheng Zhang , Yuanqi Li , Xi Chen , Yifei Jin , Pingzhong Tang , Jian Li

We propose the first discrete-time infinite-horizon dynamic formulation of the financial index tracking problem under both return-based tracking error and value-based tracking error. The formulation overcomes the limitations of existing…

Portfolio Management · Quantitative Finance 2024-11-19 Xianhua Peng , Chenyin Gong , Xue Dong He

This paper introduces a hybrid framework for portfolio optimization that fuses Long Short-Term Memory (LSTM) forecasting with a Proximal Policy Optimization (PPO) reinforcement learning strategy. The proposed system leverages the predictive…

Machine Learning · Computer Science 2025-11-25 Jun Kevin , Pujianto Yugopuspito

This paper introduces a deep reinforcement learning (RL) framework for optimizing the operations of power plants pairing renewable energy with storage. The objective is to maximize revenue from energy markets while minimizing storage…

Machine Learning · Computer Science 2023-06-16 Lucien Werner , Peeyush Kumar

Deep neural networks have achieved substantial achievements in several computer vision areas, but have vulnerabilities that are often fooled by adversarial examples that are not recognized by humans. This is an important issue for security…

Computer Vision and Pattern Recognition · Computer Science 2021-01-29 Hakmin Lee , Hong Joo Lee , Seong Tae Kim , Yong Man Ro

The inherent volatility and dynamic fluctuations within the financial stock market underscore the necessity for investors to employ a comprehensive and reliable approach that integrates risk management strategies, market trends, and the…

Trading and Market Microstructure · Quantitative Finance 2024-11-13 Alhassan S. Yasin , Prabdeep S. Gill
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