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Traditional portfolio management methods can incorporate specific investor preferences but rely on accurate forecasts of asset returns and covariances. Reinforcement learning (RL) methods do not rely on these explicit forecasts and are…

Portfolio Management · Quantitative Finance 2022-03-23 Ruan Pretorius , Terence van Zyl

Deep reinforcement learning (DRL) has been envisioned to have a competitive edge in quantitative finance. However, there is a steep development curve for quantitative traders to obtain an agent that automatically positions to win in the…

Trading and Market Microstructure · Quantitative Finance 2021-11-19 Xiao-Yang Liu , Hongyang Yang , Jiechao Gao , Christina Dan Wang

Learned construction heuristics for scheduling problems have become increasingly competitive with established solvers and heuristics in recent years. In particular, significant improvements have been observed in solution approaches using…

Artificial Intelligence · Computer Science 2024-06-12 Constantin Waubert de Puiseau , Christian Dörpelkus , Jannik Peters , Hasan Tercan , Tobias Meisen

One of the key challenges to deep reinforcement learning (deep RL) is to ensure safety at both training and testing phases. In this work, we propose a novel technique of unsupervised action planning to improve the safety of on-policy…

Robotics · Computer Science 2021-09-30 Hao-Lun Hsu , Qiuhua Huang , Sehoon Ha

Researchers have demonstrated that Deep Reinforcement Learning (DRL) is a powerful tool for finding policies that perform well on complex robotic systems. However, these policies are often unpredictable and can induce highly variable…

Robotics · Computer Science 2022-03-08 Sean Gillen , Asutay Ozmen , Katie Byl

Machine learning techniques are playing more and more important roles in finance market investment. However, finance quantitative modeling with conventional supervised learning approaches has a number of limitations. The development of deep…

Computational Finance · Quantitative Finance 2021-11-10 Zechu Li , Xiao-Yang Liu , Jiahao Zheng , Zhaoran Wang , Anwar Walid , Jian Guo

In dynamic programming (DP) and reinforcement learning (RL), an agent learns to act optimally in terms of expected long-term return by sequentially interacting with its environment modeled by a Markov decision process (MDP). More generally…

Machine Learning · Computer Science 2022-01-03 Mastane Achab , Gergely Neu

Deep reinforcement learning (DRL) has become a powerful tool for complex decision-making in machine learning and AI. However, traditional methods often assume perfect action execution, overlooking the uncertainties and deviations between an…

Robotics · Computer Science 2025-07-02 Oren Fivel , Matan Rudman , Kobi Cohen

This paper sets forth a framework for deep reinforcement learning as applied to market making (DRLMM) for cryptocurrencies. Two advanced policy gradient-based algorithms were selected as agents to interact with an environment that…

Trading and Market Microstructure · Quantitative Finance 2019-11-21 Jonathan Sadighian

Training a deep neural network to maximize a target objective has become the standard recipe for successful machine learning over the last decade. These networks can be optimized with supervised learning, if the target objective is…

Machine Learning · Computer Science 2025-05-12 Bernhard Jaeger , Andreas Geiger

Many researchers and developers are exploring for adopting Deep Reinforcement Learning (DRL) techniques in their applications. They however often find such an adoption challenging. Existing DRL libraries provide poor support for prototyping…

Artificial Intelligence · Computer Science 2021-08-20 Zihan Ding , Tianyang Yu , Yanhua Huang , Hongming Zhang , Guo Li , Quancheng Guo , Luo Mai , Hao Dong

Portfolio management is a fundamental problem in finance. It involves periodic reallocations of assets to maximize the expected returns within an appropriate level of risk exposure. Deep reinforcement learning (RL) has been considered a…

Computational Finance · Quantitative Finance 2022-10-05 Hui Niu , Siyuan Li , Jian Li

Asset allocation (or portfolio management) is the task of determining how to optimally allocate funds of a finite budget into a range of financial instruments/assets such as stocks. This study investigated the performance of reinforcement…

Portfolio Management · Quantitative Finance 2022-09-22 Adebayo Oshingbesan , Eniola Ajiboye , Peruth Kamashazi , Timothy Mbaka

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

This paper proposes a Deep Reinforcement Learning algorithm for financial portfolio trading based on Deep Q-learning. The algorithm is capable of trading high-dimensional portfolios from cross-sectional datasets of any size which may…

Portfolio Management · Quantitative Finance 2021-12-10 Uta Pigorsch , Sebastian Schäfer

This paper introduces a potential application of deep learning and artificial intelligence in finance, particularly its application in hedging. The major goal encompasses two objectives. First, we present a framework of a direct policy…

Computational Finance · Quantitative Finance 2021-03-09 Hyunsu Kim

Deep reinforcement learning (DRL) provides a promising way for intelligent agents (e.g., autonomous vehicles) to learn to navigate complex scenarios. However, DRL with neural networks as function approximators is typically considered a…

Robotics · Computer Science 2023-11-28 Jiachen Li , David Isele , Kanghoon Lee , Jinkyoo Park , Kikuo Fujimura , Mykel J. Kochenderfer

Alphas are pivotal in providing signals for quantitative trading. The industry highly values the discovery of formulaic alphas for their interpretability and ease of analysis, compared with the expressive yet overfitting-prone black-box…

Computational Finance · Quantitative Finance 2024-06-27 Feng Xu , Yan Yin , Xinyu Zhang , Tianyuan Liu , Shengyi Jiang , Zongzhang Zhang

Large-scale reinforcement learning with verifiable rewards (RLVR) has demonstrated its effectiveness in harnessing the potential of large language models (LLMs) for single-turn reasoning tasks. In realistic reasoning scenarios, LLMs can…

The traveling purchaser problem (TPP) is an important combinatorial optimization problem with broad applications. Due to the coupling between routing and purchasing, existing works on TPPs commonly address route construction and purchase…

Optimization and Control · Mathematics 2025-07-03 Haofeng Yuan , Rongping Zhu , Wanlu Yang , Shiji Song , Keyou You , Wei Fan , C. L. Philip Chen