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Proximal Policy Optimization (PPO) is a highly popular policy-based deep reinforcement learning (DRL) approach. However, we observe that the homogeneous exploration process in PPO could cause an unexpected stability issue in the training…

Machine Learning · Computer Science 2022-12-14 Qisheng Zhang , Zhen Guo , Audun Jøsang , Lance M. Kaplan , Feng Chen , Dong H. Jeong , Jin-Hee Cho

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

Deep reinforcement learning (DRL) algorithms can suffer from modeling errors between the simulation and the real world. Many studies use adversarial learning to generate perturbation during training process to model the discrepancy and…

Machine Learning · Computer Science 2024-05-21 Qianmei Liu , Yufei Kuang , Jie Wang

We evaluate benchmark deep reinforcement learning algorithms on the task of portfolio optimisation using simulated data. The simulator to generate the data is based on correlated geometric Brownian motion with the Bertsimas-Lo market impact…

Computational Engineering, Finance, and Science · Computer Science 2025-08-07 Chung I Lu

We explore online inductive transfer learning, with a feature representation transfer from a radial basis function network formed of Gaussian mixture model hidden processing units to a direct, recurrent reinforcement learning agent. This…

Trading and Market Microstructure · Quantitative Finance 2022-05-24 Gabriel Borrageiro , Nick Firoozye , Paolo Barucca

Reinforcement learning (RL) is a subfield of machine learning that has been used in many fields, such as robotics, gaming, and autonomous systems. There has been growing interest in using RL for quantitative trading, where the goal is to…

Trading and Market Microstructure · Quantitative Finance 2025-02-25 Soumyadip Sarkar

This paper focuses on reinforcement learning (RL) with limited prior knowledge. In the domain of swarm robotics for instance, the expert can hardly design a reward function or demonstrate the target behavior, forbidding the use of both…

Machine Learning · Computer Science 2012-08-07 Riad Akrour , Marc Schoenauer , Michèle Sebag

This work focuses on the dynamic hedging of financial derivatives, where a reinforcement learning algorithm is designed to minimize the variance of the delta hedging process. In contrast to previous research in this area, we apply…

Optimization and Control · Mathematics 2023-06-21 Cong Zheng , Jiafa He , Can Yang

This study investigates the effectiveness of reinforcement learning (RL) fine-tuning techniques on a compact language model (Qwen2.5-0.5B Base) for two challenging tasks: instruction following and mathematical reasoning. We compare…

Computation and Language · Computer Science 2025-07-29 Yifu Han , Geo Zhang

This study enhances a Deep Q-Network (DQN) trading model by incorporating advanced techniques like Prioritized Experience Replay, Regularized Q-Learning, Noisy Networks, Dueling, and Double DQN. Extensive tests on assets like BTC/USD and…

Computational Finance · Quantitative Finance 2023-11-21 Gang Hu

The recent success of deep neural networks (DNNs) for function approximation in reinforcement learning has triggered the development of Deep Reinforcement Learning (DRL) algorithms in various fields, such as robotics, computer games,…

Machine Learning · Computer Science 2023-07-19 Dor Livne , Kobi Cohen

Trust Region Policy Optimization (TRPO) and Proximal Policy Optimization (PPO), as the widely employed policy based reinforcement learning (RL) methods, are prone to converge to a sub-optimal solution as they limit the policy representation…

Machine Learning · Computer Science 2020-06-16 Jun Song , Chaoyue Zhao

In a recent study, Reinforcement Learning (RL) used in combination with many-objective search, has been shown to outperform alternative techniques (random search and many-objective search) for online testing of Deep Neural Network-enabled…

Software Engineering · Computer Science 2024-03-21 Luca Giamattei , Matteo Biagiola , Roberto Pietrantuono , Stefano Russo , Paolo Tonella

With the development of deep representation learning, the domain of reinforcement learning (RL) has become a powerful learning framework now capable of learning complex policies in high dimensional environments. This review summarises deep…

Machine Learning · Computer Science 2021-01-26 B Ravi Kiran , Ibrahim Sobh , Victor Talpaert , Patrick Mannion , Ahmad A. Al Sallab , Senthil Yogamani , Patrick Pérez

Deep Reinforcement Learning (DRL) is a promising approach for teaching robots new behaviour. However, one of its main limitations is the need for carefully hand-coded reward signals by an expert. We argue that it is crucial to automate the…

Robotics · Computer Science 2021-08-09 Abdalkarim Mohtasib , Gerhard Neumann , Heriberto Cuayahuitl

In this paper, a deep reinforcement learning (DRL) method is proposed to address the problem of UAV navigation in an unknown environment. However, DRL algorithms are limited by the data efficiency problem as they typically require a huge…

Robotics · Computer Science 2020-08-07 Lei He , Nabil Aouf , James F. Whidborne , Bifeng Song

Proximal policy optimization (PPO) is one of the most successful deep reinforcement-learning methods, achieving state-of-the-art performance across a wide range of challenging tasks. However, its optimization behavior is still far from…

Machine Learning · Computer Science 2020-01-15 Yuhui Wang , Hao He , Chao Wen , Xiaoyang Tan

Reinforcement learning (RL) involves sequential decision making in uncertain environments. The aim of the decision-making agent is to maximize the benefit of acting in its environment over an extended period of time. Finding an optimal…

Artificial Intelligence · Computer Science 2007-05-23 Istvan Szita , Balint Takacs , Andras Lorincz

With dynamic pricing on the rise, firms are using sophisticated algorithms for price determination. These algorithms are often non-interpretable and there has been a recent interest in their seemingly emergent ability to tacitly collude…

Computer Science and Game Theory · Computer Science 2024-10-25 Pravesh Koirala , Forrest Laine

Can an asset manager plan the optimal timing for her/his hedging strategies given market conditions? The standard approach based on Markowitz or other more or less sophisticated financial rules aims to find the best portfolio allocation…

Portfolio Management · Quantitative Finance 2020-11-10 Eric Benhamou , David Saltiel , Sandrine Ungari , Abhishek Mukhopadhyay
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