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Automated equity trading requires converting noisy market and news signals into executable portfolio decisions under risk, turnover, and transaction costs. We propose Hierarchical Reinforced Trader (HRT), a bi-level reinforcement learning…

Trading and Market Microstructure · Quantitative Finance 2026-05-12 Zijie Zhao , Roy E. Welsch

Large language models show promise for financial decision-making, yet deploying them as autonomous trading agents raises fundamental challenges: how to adapt instructions when rewards arrive late and obscured by market noise, how to…

Trading and Market Microstructure · Quantitative Finance 2026-05-21 Charidimos Papadakis , Angeliki Dimitriou , Giorgos Filandrianos , Maria Lymperaiou , Konstantinos Thomas , Giorgos Stamou

Can an agent learn efficiently in a noisy and self adapting environment with sequential, non-stationary and non-homogeneous observations? Through trading bots, we illustrate how Deep Reinforcement Learning (DRL) can tackle this challenge.…

Machine Learning · Computer Science 2020-10-19 Eric Benhamou , David Saltiel , Sandrine Ungari , Abhishek Mukhopadhyay , Jamal Atif

We introduce the first end-to-end Deep Reinforcement Learning (DRL) based framework for active high frequency trading in the stock market. We train DRL agents to trade one unit of Intel Corporation stock by employing the Proximal Policy…

Machine Learning · Computer Science 2023-08-22 Antonio Briola , Jeremy Turiel , Riccardo Marcaccioli , Alvaro Cauderan , Tomaso Aste

Restoring power distribution systems (PDSs) after large-scale outages requires sequential switching actions that reconfigure feeder topology and coordinate distributed energy resources (DERs) under nonlinear constraints, including power…

Artificial Intelligence · Computer Science 2026-02-03 Parya Dolatyabi , Ali Farajzadeh Bavil , Mahdi Khodayar

The increasing penetration of renewable energy has introduced substantial volatility into wholesale electricity markets, complicating the optimal bidding strategies for power producers. Traditional Reinforcement Learning (RL) approaches…

Multiagent Systems · Computer Science 2026-05-06 Jiayi Chen , Xuan Zhang , Guiling Wang

High-frequency trading (HFT) uses computer algorithms to make trading decisions in short time scales (e.g., second-level), which is widely used in the Cryptocurrency (Crypto) market (e.g., Bitcoin). Reinforcement learning (RL) in financial…

Trading and Market Microstructure · Quantitative Finance 2023-09-25 Molei Qin , Shuo Sun , Wentao Zhang , Haochong Xia , Xinrun Wang , Bo An

We investigate the mechanisms by which medium-frequency trading agents are adversely selected by opportunistic high-frequency traders. We use reinforcement learning (RL) within a Hawkes Limit Order Book (LOB) model in order to replicate the…

Trading and Market Microstructure · Quantitative Finance 2025-11-03 Ali Raza Jafree , Konark Jain , Nick Firoozye

Recursive Multi-Agent Trading System (RMATS) integrates four specialized agents -- Sentiment, Report, Analysis, and Risk -- coordinated through a recursive Manager Agent with iterative feedback loops. Experimental evaluation over a…

Multiagent Systems · Computer Science 2026-05-26 Jing Yang , Yichao Wu , Jianan Liu , Penghao Liang , Mengwei Yuan , Xianyou Li , Weiran Yan

Stock trading is one of the popular ways for financial management. However, the market and the environment of economy is unstable and usually not predictable. Furthermore, engaging in stock trading requires time and effort to analyze,…

Machine Learning · Computer Science 2025-05-20 Yunfei Luo , Zhangqi Duan

High-frequency trading (HFT) that executes algorithmic trading in short time scales, has recently occupied the majority of cryptocurrency market. Besides traditional quantitative trading methods, reinforcement learning (RL) has become…

Machine Learning · Computer Science 2024-06-21 Chuqiao Zong , Chaojie Wang , Molei Qin , Lei Feng , Xinrun Wang , Bo An

The realm of High-Frequency Trading (HFT) is characterized by rapid decision-making processes that capitalize on fleeting market inefficiencies. As the financial markets become increasingly competitive, there is a pressing need for…

Trading and Market Microstructure · Quantitative Finance 2023-11-21 Soumyadip Sarkar

Training LLMs as interactive agents for multi-turn decision-making remains challenging, particularly in long-horizon tasks with sparse and delayed rewards, where agents must execute extended sequences of actions before receiving meaningful…

Machine Learning · Computer Science 2026-05-12 Jiangweizhi Peng , Yuanxin Liu , Ruida Zhou , Charles Fleming , Zhaoran Wang , Alfredo Garcia , Mingyi Hong

Reinforcement Learning (RL) has shown significant promise in automated portfolio management; however, effectively balancing risk and return remains a central challenge, as many models fail to adapt to dynamically changing market conditions.…

Machine Learning · Computer Science 2025-12-04 Jiayi Chen , Jing Li , Guiling Wang

Classical portfolio optimization often requires forecasting asset returns and their corresponding variances in spite of the low signal-to-noise ratio provided in the financial markets. Modern deep reinforcement learning (DRL) offers a…

Portfolio Management · Quantitative Finance 2023-05-19 Alessio Brini , Daniele Tantari

Agent-based modelling (ABM) approaches for high-frequency financial markets are difficult to calibrate and validate, partly due to the large parameter space created by defining fixed agent policies. Multi-agent reinforcement learning (MARL)…

Trading and Market Microstructure · Quantitative Finance 2025-11-05 Valentin Mohl , Sascha Frey , Reuben Leyland , Kang Li , George Nigmatulin , Mihai Cucuringu , Stefan Zohren , Jakob Foerster , Anisoara Calinescu

Generating an investment strategy using advanced deep learning methods in stock markets has recently been a topic of interest. Most existing deep learning methods focus on proposing an optimal model or network architecture by maximizing…

Artificial Intelligence · Computer Science 2020-07-13 Jinho Lee , Raehyun Kim , Seok-Won Yi , Jaewoo Kang

Recent advances in reinforcement learning, such as Dynamic Sampling Policy Optimization (DAPO), show strong performance when paired with large language models (LLMs). Motivated by this success, we ask whether similar gains can be realized…

Computational Engineering, Finance, and Science · Computer Science 2025-05-27 Ruijian Zha , Bojun Liu

As automated trading gains traction in the financial market, algorithmic investment strategies are increasingly prominent. While Large Language Models (LLMs) and Agent-based models exhibit promising potential in real-time market analysis…

Multiagent Systems · Computer Science 2025-02-20 Xiangyu Li , Yawen Zeng , Xiaofen Xing , Jin Xu , Xiangmin Xu

This paper presents a novel hierarchical framework for portfolio optimization, integrating lightweight Large Language Models (LLMs) with Deep Reinforcement Learning (DRL) to combine sentiment signals from financial news with traditional…

Portfolio Management · Quantitative Finance 2025-07-25 Benjamin Coriat , Eric Benhamou
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