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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

Recently equal risk pricing, a framework for fair derivative pricing, was extended to consider dynamic risk measures. However, all current implementations either employ a static risk measure that violates time consistency, or are based on…

Pricing of Securities · Quantitative Finance 2021-09-10 Saeed Marzban , Erick Delage , Jonathan Yumeng Li

Can deep reinforcement learning algorithms be exploited as solvers for optimal trading strategies? The aim of this work is to test reinforcement learning algorithms on conceptually simple, but mathematically non-trivial, trading…

Mathematical Finance · Quantitative Finance 2020-04-10 Ayman Chaouki , Stephen Hardiman , Christian Schmidt , Emmanuel Sérié , Joachim de Lataillade

Artificial intelligence is transforming financial investment decision-making frameworks, with deep reinforcement learning demonstrating substantial potential in robo-advisory applications. This paper addresses the limitations of traditional…

Portfolio Management · Quantitative Finance 2025-02-24 Gang Huang , Xiaohua Zhou , Qingyang Song

Dynamic Algorithm Configuration (DAC) studies the efficient identification of control policies for parameterized optimization algorithms. Numerous studies leverage Reinforcement Learning (RL) to address DAC challenges; however, applying RL…

Machine Learning · Computer Science 2026-04-03 Tai Nguyen , Phong Le , André Biedenkapp , Carola Doerr , Nguyen Dang

Reinforcement learning (RL) is attracting attention as an effective way to solve sequential optimization problems that involve high dimensional state/action space and stochastic uncertainties. Many such problems involve constraints…

Machine Learning · Computer Science 2021-04-01 Haeun Yoo , Victor M. Zavala , Jay H. Lee

We present a reinforcement learning (RL)-driven framework for optimizing block-preconditioner sizes in iterative solvers used in portfolio optimization and option pricing. The covariance matrix in portfolio optimization or the…

Portfolio Management · Quantitative Finance 2025-07-04 Hadi Keramati , Samaneh Jazayeri

Preference-based reinforcement learning (RL) is a key paradigm for aligning policies with human judgments, yet its theoretical behavior in distributed settings where preference data are fragmented across heterogeneous users remains poorly…

Machine Learning · Computer Science 2026-05-21 Zhanhong Jiang

This paper proposes a novel approach based on deep reinforcement learning (DRL) for the 2D+1 packing problem with spatial constraints. This problem is an extension of the traditional 2D packing problem, incorporating an additional…

Machine Learning · Computer Science 2025-03-25 Victor Ulisses Pugliese , Oséias F. de A. Ferreira , Fabio A. Faria

Large Vision-Language Models (LVLMs) or multimodal large language models represent a significant advancement in artificial intelligence, enabling systems to understand and generate content across both visual and textual modalities. While…

Machine Learning · Computer Science 2025-09-09 Thanh Thi Nguyen , Campbell Wilson , Janis Dalins

Energy arbitrage is one of the most profitable sources of income for battery operators, generating revenues by buying and selling electricity at different prices. Forecasting these revenues is challenging due to the inherent uncertainty of…

Machine Learning · Computer Science 2024-10-29 Manuel Sage , Joshua Campbell , Yaoyao Fiona Zhao

Direct Preference Optimization (DPO) have emerged as a popular method for aligning Large Language Models (LLMs) with human preferences. While DPO effectively preserves the relative ordering between chosen and rejected responses through…

Computation and Language · Computer Science 2025-06-05 Lin Sun , Chuang Liu , Peng Liu , Bingyang Li , Weijia Lu , Ning Wu

This research gauges the ability of deep reinforcement learning (DRL) techniques to assist the optimization and control of fluid mechanical systems. It combines a novel, "degenerate" version of the proximal policy optimization (PPO)…

Optimization and Control · Mathematics 2021-05-19 H. Ghraieb , J. Viquerat , A. Larcher , P. Meliga , E. Hachem

Decision-focused learning (DFL) is attractive for portfolio optimization because it trains predictors according to downstream decision quality rather than prediction accuracy alone. However, SPO(Smart, Predict then Optimize surrogate)-based…

Portfolio Management · Quantitative Finance 2026-05-25 Yi Wang , Takashi Hasuike

Deep Reinforcement Learning (DRL) has become a popular method for solving control problems in power systems. Conventional DRL encourages the agent to explore various policies encoded in a neural network (NN) with the goal of maximizing the…

Systems and Control · Electrical Eng. & Systems 2024-10-28 Tong Wu , Anna Scaglione , Daniel Arnold

Plastic injection molding remains essential to modern manufacturing. However, optimizing process parameters to balance product quality and profitability under dynamic environmental and economic conditions remains a persistent challenge.…

Artificial Intelligence · Computer Science 2025-05-19 Joon-Young Kim , Jecheon Yu , Heekyu Kim , Seunghwa Ryu

Deep reinforcement learning (DRL) is a promising outer-loop intelligence paradigm which can deploy problem solving strategies for complex tasks. Consequently, DRL has been utilized for several scientific applications, specifically in cases…

Machine Learning · Computer Science 2023-04-05 Sahil Bhola , Suraj Pawar , Prasanna Balaprakash , Romit Maulik

Order picking is a pivotal operation in warehouses that directly impacts overall efficiency and profitability. This study addresses the dynamic order picking problem, a significant concern in modern warehouse management, where real-time…

Optimization and Control · Mathematics 2025-04-08 Sasan Mahmoudinazlou , Abhay Sobhanan , Hadi Charkhgard , Ali Eshragh , George Dunn

The rapid rise of large language models (LLMs) has unlocked many applications but also underscores the challenge of aligning them with diverse values and preferences. Direct Preference Optimization (DPO) is central to alignment but…

Deep reinforcement learning (DRL) finds extensive application in autonomous drone navigation within complex, high-risk environments. However, its practical deployment faces a safety-exploration dilemma: soft penalty mechanisms encourage…

Robotics · Computer Science 2026-05-04 Wentao Chen , Jingtang Chen , Mingjian Fu , Tiantian Li , Youfeng Su , Wenxi Liu , Yuanlong Yu
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