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This paper presents a novel risk-sensitive trading agent combining reinforcement learning and large language models (LLMs). We extend the Conditional Value-at-Risk Proximal Policy Optimization (CPPO) algorithm, by adding risk assessment and…

Trading and Market Microstructure · Quantitative Finance 2025-02-12 Mostapha Benhenda

In many computational science and engineering applications, the output of a system of interest corresponding to a given input can be queried at different levels of fidelity with different costs. Typically, low-fidelity data is cheap and…

Machine Learning · Computer Science 2022-06-13 Sami Khairy , Prasanna Balaprakash

With the development of artificial intelligence technology, quantitative trading systems represented by reinforcement learning have emerged in the stock trading market. The authors combined the deep Q network in reinforcement learning with…

Statistical Finance · Quantitative Finance 2021-12-01 Yizhuo Li , Peng Zhou , Fangyi Li , Xiao Yang

The increasingly challenging task of maintaining power grid security requires innovative solutions. Novel approaches using reinforcement learning (RL) agents have been proposed to help grid operators navigate the massive decision space and…

Systems and Control · Electrical Eng. & Systems 2025-06-24 Benjamin M. Peter , Mert Korkali

Algorithmic trading refers to executing buy and sell orders for specific assets based on automatically identified trading opportunities. Strategies based on reinforcement learning (RL) have demonstrated remarkable capabilities in addressing…

Trading and Market Microstructure · Quantitative Finance 2024-07-03 Xi Cheng , Jinghao Zhang , Yunan Zeng , Wenfang Xue

Traditional economic models often rely on fixed assumptions about market dynamics, limiting their ability to capture the complexities and stochastic nature of real-world scenarios. However, reality is more complex and includes noise, making…

Multi-task representation learning (MTRL) is an approach that learns shared latent representations across related tasks, facilitating collaborative learning that improves the overall learning efficiency. This paper studies MTRL for…

Machine Learning · Computer Science 2026-04-07 Yaoze Guo , Shana Moothedath

Autonomous agents based on Large Language Models (LLMs) that devise plans and tackle real-world challenges have gained prominence.However, tailoring these agents for specialized domains like quantitative investment remains a formidable…

Artificial Intelligence · Computer Science 2024-02-07 Saizhuo Wang , Hang Yuan , Lionel M. Ni , Jian Guo

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 many reinforcement learning applications, the underlying environment reward and transition functions are explicitly known differentiable functions. This enables us to use recent research which applies machine learning tools to stochastic…

Portfolio Management · Quantitative Finance 2022-04-08 Thibault Jaisson

Inspired by a graph-based technique for predicting molecular properties in quantum chemistry -- atoms' position within molecules in three-dimensional space -- we present Q-MARL, a completely decentralised learning architecture that supports…

Machine Learning · Computer Science 2025-03-11 Kha Vo , Chin-Teng Lin

While Deep Reinforcement Learning (DRL) has emerged as a promising approach to many complex tasks, it remains challenging to train a single DRL agent that is capable of undertaking multiple different continuous control tasks. In this paper,…

Machine Learning · Computer Science 2020-10-19 Zhiyuan Xu , Kun Wu , Zhengping Che , Jian Tang , Jieping Ye

Accurate stock market prediction provides great opportunities for informed decision-making, yet existing methods struggle with financial data's non-linear, high-dimensional, and volatile characteristics. Advanced predictive models are…

Statistical Finance · Quantitative Finance 2025-01-20 Yuxi Hong

Reinforcement learning (RL) can be used to create a decision-making agent for autonomous driving. However, previous approaches provide only black-box solutions, which do not offer information on how confident the agent is about its…

Robotics · Computer Science 2023-04-18 Carl-Johan Hoel , Krister Wolff , Leo Laine

Test-time reinforcement learning (TTRL) has emerged as a promising paradigm for self-evolving large reasoning models (LRMs), enabling online adaptation on unlabeled test inputs via self-induced rewards through majority voting. However, a…

Artificial Intelligence · Computer Science 2026-03-03 Ruotong Liao , Nikolai Röhrich , Xiaohan Wang , Yuhui Zhang , Yasaman Samadzadeh , Volker Tresp , Serena Yeung-Levy

Financial markets are influenced by human behavior that deviates from rationality due to cognitive biases. Traditional reinforcement learning (RL) models for financial decision-making assume rational agents, potentially overlooking the…

Machine Learning · Computer Science 2026-01-14 Liu He

Reinforcement learning (RL) has emerged as a powerful paradigm for solving decision-making problems in dynamic environments. In this research, we explore the application of Double DQN (DDQN) and Dueling Network Architectures, to financial…

Machine Learning · Computer Science 2025-04-17 Bruno Giorgio

Offline Reinforcement Learning (RL), which operates solely on static datasets without further interactions with the environment, provides an appealing alternative to learning a safe and promising control policy. The prevailing methods…

Machine Learning · Computer Science 2025-03-18 Kun Wu , Yinuo Zhao , Zhiyuan Xu , Zhengping Che , Chengxiang Yin , Chi Harold Liu , Feiferi Feng , Jian Tang

With Reinforcement Learning (RL) for inventory management (IM) being a nascent field of research, approaches tend to be limited to simple, linear environments with implementations that are minor modifications of off-the-shelf RL algorithms.…

Machine Learning · Computer Science 2023-04-19 Madhav Khirwar , Karthik S. Gurumoorthy , Ankit Ajit Jain , Shantala Manchenahally

Quantum reinforcement learning (QRL) has emerged as a framework to solve sequential decision-making tasks, showcasing empirical quantum advantages. A notable development is through quantum recurrent neural networks (QRNNs) for…

Quantum Physics · Physics 2023-09-15 Samuel Yen-Chi Chen