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The objectives of option hedging/trading extend beyond mere protection against downside risks, with a desire to seek gains also driving agent's strategies. In this study, we showcase the potential of robust risk-aware reinforcement learning…

Computational Finance · Quantitative Finance 2023-12-27 David Wu , Sebastian Jaimungal

This paper introduces a novel approach, Decision Theory-guided Deep Reinforcement Learning (DT-guided DRL), to address the inherent cold start problem in DRL. By integrating decision theory principles, DT-guided DRL enhances agents' initial…

Machine Learning · Computer Science 2024-02-12 Zelin Wan , Jin-Hee Cho , Mu Zhu , Ahmed H. Anwar , Charles Kamhoua , Munindar P. Singh

This report investigates the application of deep reinforcement learning (DRL) algorithms for dynamic resource allocation in wireless communication systems. An environment that includes a base station, multiple antennas, and user equipment…

Distributed, Parallel, and Cluster Computing · Computer Science 2025-03-14 Shubham Malhotra , Fnu Yashu , Muhammad Saqib , Dipkumar Mehta , Jagdish Jangid , Sachin Dixit

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

Optimal stopping is the problem of deciding the right time at which to take a particular action in a stochastic system, in order to maximize an expected reward. It has many applications in areas such as finance, healthcare, and statistics.…

Artificial Intelligence · Computer Science 2021-05-20 Abderrahim Fathan , Erick Delage

The optimal objective is a fundamental aspect of reinforcement learning (RL), as it determines how policies are evaluated and optimized. While total return maximization is the ideal objective in RL, discounted return maximization is the…

Machine Learning · Computer Science 2025-03-19 Shuyu Yin , Fei Wen , Peilin Liu , Tao Luo

Model-Free Reinforcement Learning has achieved meaningful results in stable environments but, to this day, it remains problematic in regime changing environments like financial markets. In contrast, model-based RL is able to capture some…

Machine Learning · Computer Science 2021-04-23 Eric Benhamou , David Saltiel , Serge Tabachnik , Sui Kai Wong , François Chareyron

In today's forex market traders increasingly turn to algorithmic trading, leveraging computers to seek more profits. Deep learning techniques as cutting-edge advancements in machine learning, capable of identifying patterns in financial…

Computational Engineering, Finance, and Science · Computer Science 2024-08-31 Davoud Sarani , Parviz Rashidi-Khazaee

Strategic aggregation of electric vehicle batteries as energy reservoirs can optimize power grid demand, benefiting smart and connected communities, especially large office buildings that offer workplace charging. This involves optimizing…

Machine Learning · Computer Science 2025-02-27 Fangqi Liu , Rishav Sen , Jose Paolo Talusan , Ava Pettet , Aaron Kandel , Yoshinori Suzue , Ayan Mukhopadhyay , Abhishek Dubey

This study presents a novel approach to addressing offline reinforcement learning (RL) problems by reframing them as regression tasks that can be effectively solved using Decision Trees. Mainly, we introduce two distinct frameworks:…

Machine Learning · Computer Science 2024-10-16 Prajwal Koirala , Cody Fleming

In the past few years, Deep Reinforcement Learning (DRL) has become a valuable solution to automatically learn efficient resource management strategies in complex networks. In many scenarios, the learning task is performed in the Cloud,…

Networking and Internet Architecture · Computer Science 2022-12-01 Seyyidahmed Lahmer , Federico Chiariotti , Andrea Zanella

Deep Deterministic Policy Gradient (DDPG) algorithm is one of the most well-known reinforcement learning methods. However, this method is inefficient and unstable in practical applications. On the other hand, the bias and variance of the Q…

Machine Learning · Computer Science 2020-07-02 Shuai Han , Wenbo Zhou , Shuai Lü , Jiayu Yu

An automatic program that generates constant profit from the financial market is lucrative for every market practitioner. Recent advance in deep reinforcement learning provides a framework toward end-to-end training of such trading agent.…

Trading and Market Microstructure · Quantitative Finance 2018-07-10 Chien Yi Huang

Meta-reinforcement learning algorithms provide a data-driven way to acquire policies that quickly adapt to many tasks with varying rewards or dynamics functions. However, learned meta-policies are often effective only on the exact task…

Machine Learning · Computer Science 2023-07-13 Anurag Ajay , Abhishek Gupta , Dibya Ghosh , Sergey Levine , Pulkit Agrawal

This paper explores the mean-variance portfolio selection problem in a multi-period financial market characterized by regime-switching dynamics and uncontrollable liabilities. To address the uncertainty in the decision-making process within…

Optimization and Control · Mathematics 2025-09-04 Zhongqin Gao , Ping Chen , Xun Li , Yan Lv , Wenhao Zhang

This paper explores the application of deep Q-learning to hedging at-the-money options on the S\&P~500 index. We develop an agent based on the Twin Delayed Deep Deterministic Policy Gradient (TD3) algorithm, trained to simulate hedging…

Computational Finance · Quantitative Finance 2025-10-13 Zofia Bracha , Paweł Sakowski , Jakub Michańków

With the increasing penetration of distributed energy resources, distributed optimization algorithms have attracted significant attention for power systems applications due to their potential for superior scalability, privacy, and…

Systems and Control · Electrical Eng. & Systems 2022-05-09 Sihan Zeng , Alyssa Kody , Youngdae Kim , Kibaek Kim , Daniel K. Molzahn

A deep reinforcement learning (DRL) agent observes its states through observations, which may contain natural measurement errors or adversarial noises. Since the observations deviate from the true states, they can mislead the agent into…

Machine Learning · Computer Science 2021-07-15 Huan Zhang , Hongge Chen , Chaowei Xiao , Bo Li , Mingyan Liu , Duane Boning , Cho-Jui Hsieh

This paper proposes a novel approach for Asset-Liability Management (ALM) by employing continuous-time Reinforcement Learning (RL) with a linear-quadratic (LQ) formulation that incorporates both interim and terminal objectives. We develop a…

Machine Learning · Computer Science 2025-09-30 Yilie Huang

Renewable energy resources (RERs) have been increasingly integrated into large-scale distributed power systems. Considering uncertainties and voltage fluctuation issues introduced by RERs, in this paper, we propose a deep reinforcement…

Machine Learning · Computer Science 2022-08-08 Jinhao Li , Ruichang Zhang , Hao Wang , Zhi Liu , Hongyang Lai , Yanru Zhang