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Stock portfolio optimization is the process of continuous reallocation of funds to a selection of stocks. This is a particularly well-suited problem for reinforcement learning, as daily rewards are compounding and objective functions may…

Portfolio Management · Quantitative Finance 2022-07-06 Charl Maree , Christian W. Omlin

We consider the problem of learning control policies that optimize a reward function while satisfying constraints due to considerations of safety, fairness, or other costs. We propose a new algorithm, Projection-Based Constrained Policy…

Machine Learning · Computer Science 2020-10-08 Tsung-Yen Yang , Justinian Rosca , Karthik Narasimhan , Peter J. Ramadge

Solving portfolio management problems using deep reinforcement learning has been getting much attention in finance for a few years. We have proposed a new method using experts signals and historical price data to feed into our reinforcement…

Computational Finance · Quantitative Finance 2023-01-02 MohammadAmin Fazli , Mahdi Lashkari , Hamed Taherkhani , Jafar Habibi

Proximal policy optimization (PPO) is one of the most popular deep reinforcement learning (RL) methods, achieving state-of-the-art performance across a wide range of challenging tasks. However, as a model-free RL method, the success of PPO…

Machine Learning · Computer Science 2019-11-11 Yuhui Wang , Hao He , Xiaoyang Tan , Yaozhong Gan

In this paper, we tackle the challenging problem of delayed rewards in reinforcement learning (RL). While Proximal Policy Optimization (PPO) has emerged as a leading Policy Gradient method, its performance can degrade under delayed rewards.…

In recent years, reinforcement learning (RL) has gained increasing attention in control engineering. Especially, policy gradient methods are widely used. In this work, we improve the tracking performance of proximal policy optimization…

Machine Learning · Computer Science 2021-07-21 Jana Mayer , Johannes Westermann , Juan Pedro Gutiérrez H. Muriedas , Uwe Mettin , Alexander Lampe

Proximal policy optimization (PPO) has yielded state-of-the-art results in policy search, a subfield of reinforcement learning, with one of its key points being the use of a surrogate objective function to restrict the step size at each…

Machine Learning · Computer Science 2020-12-07 Wangshu Zhu , Andre Rosendo

We attempt to mitigate the persistent tradeoff between risk and return in medium- to long-term portfolio management. This paper proposes a novel LLM-guided no-regret portfolio allocation framework that integrates online learning dynamics,…

Portfolio Management · Quantitative Finance 2026-01-27 Muhammad Abro , Hassan Jaleel

The objective of a reinforcement learning agent is to discover better actions through exploration. However, typical exploration techniques aim to maximize rewards, often incurring high costs in both exploration and learning processes. We…

Machine Learning · Computer Science 2024-12-24 Akane Tsuboya , Yu Kono , Tatsuji Takahashi

We study whether a risk-sensitive objective from asset-pricing theory -- recursive utility -- improves reinforcement learning for portfolio allocation. The Bellman equation under recursive utility involves a certainty equivalent (CE) of…

General Finance · Quantitative Finance 2026-03-25 Minkey Chang

Portfolio management is the art and science in fiance that concerns continuous reallocation of funds and assets across financial instruments to meet the desired returns to risk profile. Deep reinforcement learning (RL) has gained increasing…

Portfolio Management · Quantitative Finance 2023-10-30 Yinheng Li , Junhao Wang , Yijie Cao

Reinforcement learning (RL) has re-emerged as a natural approach for training interactive LLM agents in real-world environments. However, directly applying the widely used Group Relative Policy Optimization (GRPO) algorithm to multi-turn…

Machine Learning · Computer Science 2026-01-27 Junbo Li , Peng Zhou , Rui Meng , Meet P. Vadera , Lihong Li , Yang Li

Portfolio Management is the process of overseeing a group of investments, referred to as a portfolio, with the objective of achieving predetermined investment goals. Portfolio optimization is a key component that involves allocating the…

Portfolio Management · Quantitative Finance 2026-02-20 Srijan Sood , Kassiani Papasotiriou , Marius Vaiciulis , Tucker Balch

Among the great successes of Reinforcement Learning (RL), self-play algorithms play an essential role in solving competitive games. Current self-play algorithms optimize the agent to maximize expected win-rates against its current or…

Machine Learning · Computer Science 2023-12-18 Yuhua Jiang , Qihan Liu , Xiaoteng Ma , Chenghao Li , Yiqin Yang , Jun Yang , Bin Liang , Qianchuan Zhao

Proximal Policy Optimization (PPO) is among the most widely used algorithms in reinforcement learning, which achieves state-of-the-art performance in many challenging problems. The keys to its success are the reliable policy updates through…

Machine Learning · Computer Science 2021-07-02 Mónika Farsang , Luca Szegletes

Solving tasks in Reinforcement Learning is no easy feat. As the goal of the agent is to maximize the accumulated reward, it often learns to exploit loopholes and misspecifications in the reward signal resulting in unwanted behavior. While…

Machine Learning · Computer Science 2018-12-27 Chen Tessler , Daniel J. Mankowitz , Shie Mannor

The policy gradient method enjoys the simplicity of the objective where the agent optimizes the cumulative reward directly. Moreover, in the continuous action domain, parameterized distribution of action distribution allows easy control of…

Machine Learning · Computer Science 2022-12-16 Md Masudur Rahman , Yexiang Xue

This research proposes an enhancement to the innovative portfolio optimization approach using the G-Learning algorithm, combined with parametric optimization via the GIRL algorithm (G-learning approach to the setting of Inverse…

Portfolio Management · Quantitative Finance 2025-11-25 Fermat Leukam , Rock Stephane Koffi , Prudence Djagba

Portfolio optimization in real-world financial markets is notoriously difficult due to non-stationarity, noisy data, and high transaction costs. Standard predict-then-optimize methods first forecast returns and then solve for weights,…

Portfolio Management · Quantitative Finance 2026-05-29 Rahul Fernandes , Travis Desell

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