English
Related papers

Related papers: Hi-DARTS: Hierarchical Dynamically Adapting Reinfo…

200 papers

High-frequency trading (HFT) has transformed modern financial markets, making reliable short-term price forecasting models essential. In this study, we present a novel approach to mid-price forecasting using Level 1 limit order book (LOB)…

Statistical Finance · Quantitative Finance 2025-01-03 Adamantios Ntakaris , Gbenga Ibikunle

Dynamic portfolio optimization is the process of sequentially allocating wealth to a collection of assets in some consecutive trading periods, based on investors' return-risk profile. Automating this process with machine learning remains a…

Machine Learning · Computer Science 2019-01-28 Pengqian Yu , Joon Sern Lee , Ilya Kulyatin , Zekun Shi , Sakyasingha Dasgupta

Many real-world applications can be formulated as multi-agent cooperation problems, such as network packet routing and coordination of autonomous vehicles. The emergence of deep reinforcement learning (DRL) provides a promising approach for…

Multiagent Systems · Computer Science 2022-06-28 Zhixuan Liang , Jiannong Cao , Shan Jiang , Divya Saxena , Huafeng Xu

Several novel statistical methods have been developed to estimate large integrated volatility matrices based on high-frequency financial data. To investigate their asymptotic behaviors, they require a sub-Gaussian or finite high-order…

Statistics Theory · Mathematics 2023-08-15 Minseok Shin , Donggyu Kim , Jianqing Fan

This paper presents a deep reinforcement learning (DRL) framework for dynamic portfolio optimization under market uncertainty and risk. The proposed model integrates a Sharpe ratio-based reward function with direct risk control mechanisms,…

Portfolio Management · Quantitative Finance 2025-11-17 Emmanuel Lwele , Sabuni Emmanuel , Sitali Gabriel Sitali

The deployment of autonomous AI agents in derivatives markets has widened a practical gap between static model calibration and realized hedging outcomes. We introduce two reinforcement learning frameworks, a novel Replication Learning of…

Artificial Intelligence · Computer Science 2026-03-10 Minxuan Hu , Ziheng Chen , Jiayu Yi , Wenxi Sun

This paper proposes a Deep Reinforcement Learning algorithm for financial portfolio trading based on Deep Q-learning. The algorithm is capable of trading high-dimensional portfolios from cross-sectional datasets of any size which may…

Portfolio Management · Quantitative Finance 2021-12-10 Uta Pigorsch , Sebastian Schäfer

Portfolio optimization in non-stationary markets is challenging due to regime shifts, dynamic correlations, and the limited interpretability of deep reinforcement learning (DRL) policies. We propose a Segmented Allocation with…

Artificial Intelligence · Computer Science 2025-12-30 Xiaotian Ren , Nuerxiati Abudurexiti , Zhengyong Jiang , Angelos Stefanidis , Hongbin Liu , Jionglong Su

The autonomous trading agent is one of the most actively studied areas of artificial intelligence to solve the capital market portfolio management problem. The two primary goals of the portfolio management problem are maximizing profit and…

Trading and Market Microstructure · Quantitative Finance 2019-09-10 Wonsup Shin , Seok-Jun Bu , Sung-Bae Cho

Portfolio management via reinforcement learning is at the forefront of fintech research, which explores how to optimally reallocate a fund into different financial assets over the long term by trial-and-error. Existing methods are…

Artificial Intelligence · Computer Science 2021-02-09 Rundong Wang , Hongxin Wei , Bo An , Zhouyan Feng , Jun Yao

The necessity for cooperation among intelligent machines has popularised cooperative multi-agent reinforcement learning (MARL) in AI research. However, many research endeavours heavily rely on parameter sharing among agents, which confines…

Machine Learning · Computer Science 2023-12-29 Yifan Zhong , Jakub Grudzien Kuba , Xidong Feng , Siyi Hu , Jiaming Ji , Yaodong Yang

Algorithmic trading has gained attention due to its potential for generating superior returns. This paper investigates the effectiveness of deep reinforcement learning (DRL) methods in algorithmic commodities trading. It formulates the…

Trading and Market Microstructure · Quantitative Finance 2023-09-06 Jonas Hanetho

Deep Reinforcement Learning (DRL) has been extensively used to address portfolio optimization problems. The DRL agents acquire knowledge and make decisions through unsupervised interactions with their environment without requiring explicit…

Machine Learning · Computer Science 2025-01-14 Ruoyu Sun , Yue Xi , Angelos Stefanidis , Zhengyong Jiang , Jionglong Su

Deep reinforcement learning has recently emerged as a promising feedback control strategy for complex dynamical systems governed by partial differential equations (PDEs). When dealing with distributed, high-dimensional problems in state and…

Machine Learning · Computer Science 2025-09-23 Nicolò Botteghi , Matteo Tomasetto , Urban Fasel , Francesco Braghin , Andrea Manzoni

In this work, we explore the use of hierarchical reinforcement learning (HRL) for the task of temporal sequence prediction. Using a combination of deep learning and HRL, we develop a stock agent to predict temporal price sequences from…

Machine Learning · Computer Science 2023-10-10 Faith Johnson , Kristin Dana

Penetration testing the organised attack of a computer system in order to test existing defences has been used extensively to evaluate network security. This is a time consuming process and requires in-depth knowledge for the establishment…

Artificial Intelligence · Computer Science 2021-09-15 Khuong Tran , Ashlesha Akella , Maxwell Standen , Junae Kim , David Bowman , Toby Richer , Chin-Teng Lin

High-frequency trading (HFT) represents a pivotal and intensely competitive domain within the financial markets. The velocity and accuracy of data processing exert a direct influence on profitability, underscoring the significance of this…

Machine Learning · Computer Science 2024-12-03 Yuxin Fan , Zhuohuan Hu , Lei Fu , Yu Cheng , Liyang Wang , Yuxiang Wang

Hierarchical Reinforcement Learning (HRL) is well-suitedd for solving complex tasks by breaking them down into structured policies. However, HRL agents often struggle with efficient exploration and quick adaptation. To overcome these…

Machine Learning · Computer Science 2025-03-18 Arash Khajooeinejad , Fatemeh Sadat Masoumi , Masoumeh Chapariniya

Hierarchical reinforcement learning (HRL) holds great potential for sample-efficient learning on challenging long-horizon tasks. In particular, letting a higher level assign subgoals to a lower level has been shown to enable fast learning…

Machine Learning · Computer Science 2021-12-07 Nico Gürtler , Dieter Büchler , Georg Martius

Pair trading is one of the most effective statistical arbitrage strategies which seeks a neutral profit by hedging a pair of selected assets. Existing methods generally decompose the task into two separate steps: pair selection and trading.…

Computational Finance · Quantitative Finance 2023-09-26 Weiguang Han , Boyi Zhang , Qianqian Xie , Min Peng , Yanzhao Lai , Jimin Huang