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We present a robust Deep Hedging framework for the pricing and hedging of option portfolios that significantly improves training efficiency and model robustness. In particular, we propose a neural model for training model embeddings which…

Computational Finance · Quantitative Finance 2025-04-24 Fabienne Schmid , Daniel Oeltz

Deep reinforcement learning has achieved many impressive results in recent years. However, tasks with sparse rewards or long horizons continue to pose significant challenges. To tackle these important problems, we propose a general…

Artificial Intelligence · Computer Science 2017-04-12 Carlos Florensa , Yan Duan , Pieter Abbeel

Identifying governing equations for a dynamical system is a topic of critical interest across an array of disciplines, from mathematics to engineering to biology. Machine learning -- specifically deep learning -- techniques have shown their…

Dynamical Systems · Mathematics 2026-05-07 Nibodh Boddupalli , Timothy Matchen , Jeff Moehlis

Recurrent neural networks (RNNs) are more suitable for learning non-linear dependencies in dynamical systems from observed time series data. In practice all the external variables driving such systems are not known a priori, especially in…

Machine Learning · Computer Science 2020-06-02 Mhlasakululeka Mvubu , Emmanuel Kabuga , Christian Plitz , Bubacarr Bah , Ronnie Becker , Hans Georg Zimmermann

Nonlinear differential equations are challenging to solve numerically and are important to understanding the dynamics of many physical systems. Deep neural networks have been applied to help alleviate the computational cost that is…

Numerical Analysis · Mathematics 2020-10-27 Bryce Chudomelka , Youngjoon Hong , Hyunwoo Kim , Jinyoung Park

In this study, we propose a novel approach of nowcasting and forecasting the macroeconomic status of a country using deep learning techniques. We focus particularly on the US economy but the methodology can be applied also to other…

Computational Finance · Quantitative Finance 2023-01-25 Anastasios Petropoulos , Vassilis Siakoulis , Konstantinos P. Panousis , Loukas Papadoulas , Sotirios Chatzis

Neural networks have shown significant potential in solving partial differential equations (PDEs). While deep networks are capable of approximating complex functions, direct one-shot training often faces limitations in both accuracy and…

Numerical Analysis · Mathematics 2025-03-10 Mingxing Weng , Zhiping Mao , Jie Shen

For any financial organization, computing accurate quarterly forecasts for various products is one of the most critical operations. As the granularity at which forecasts are needed increases, traditional statistical time series models may…

Machine Learning · Computer Science 2020-01-28 Allison Koenecke , Amita Gajewar

We explore the use of deep learning hierarchical models for problems in financial prediction and classification. Financial prediction problems -- such as those presented in designing and pricing securities, constructing portfolios, and risk…

Machine Learning · Computer Science 2018-01-16 J. B. Heaton , N. G. Polson , J. H. Witte

Deep reinforcement learning has proven to be a great success in allowing agents to learn complex tasks. However, its application to actual robots can be prohibitively expensive. Furthermore, the unpredictability of human behavior in…

Robotics · Computer Science 2019-08-16 Mohammad Thabet , Massimiliano Patacchiola , Angelo Cangelosi

Neural Algorithmic Reasoning (NAR) research has demonstrated that graph neural networks (GNNs) could learn to execute classical algorithms. However, most previous approaches have always used a recurrent architecture, where each iteration of…

Machine Learning · Computer Science 2024-10-22 Dobrik Georgiev , JJ Wilson , Davide Buffelli , Pietro Liò

We present a large scale benchmark of modern deep learning architectures for a financial time series prediction and position sizing task, with a primary focus on Sharpe ratio optimization. Evaluating linear models, recurrent networks,…

Trading and Market Microstructure · Quantitative Finance 2026-03-03 Adir Saly-Kaufmann , Kieran Wood , Jan Peter-Calliess , Stefan Zohren

We investigate the effectiveness of different machine learning methodologies in predicting economic cycles. We identify the deep learning methodology of Bi-LSTM with Autoencoder as the most accurate model to forecast the beginning and end…

General Economics · Economics 2021-07-26 Zihao Wang , Kun Li , Steve Q. Xia , Hongfu Liu

Deep neural networks can be roughly divided into deterministic neural networks and stochastic neural networks.The former is usually trained to achieve a mapping from input space to output space via maximum likelihood estimation for the…

Recent focus on robustness to adversarial attacks for deep neural networks produced a large variety of algorithms for training robust models. Most of the effective algorithms involve solving the min-max optimization problem for training…

Machine Learning · Computer Science 2021-03-03 Yasaman Esfandiari , Aditya Balu , Keivan Ebrahimi , Umesh Vaidya , Nicola Elia , Soumik Sarkar

We propose a deep supervised learning algorithm based on low-discrepancy sequences as the training set. By a combination of theoretical arguments and extensive numerical experiments we demonstrate that the proposed algorithm significantly…

Machine Learning · Computer Science 2020-05-27 Siddhartha Mishra , T. Konstantin Rusch

Most stochastic gradient descent algorithms can optimize neural networks that are sub-differentiable in their parameters; however, this implies that the neural network's activation function must exhibit a degree of continuity which limits…

Neural and Evolutionary Computing · Computer Science 2021-12-16 Anastasis Kratsios , Behnoosh Zamanlooy

We introduce a novel approach to options trading strategies using a highly scalable and data-driven machine learning algorithm. In contrast to traditional approaches that often require specifications of underlying market dynamics or…

Portfolio Management · Quantitative Finance 2024-11-22 Wee Ling Tan , Stephen Roberts , Stefan Zohren

Deep learning provides powerful methods to impute structured information from large-scale, unstructured text and image datasets. For example, economists might wish to detect the presence of economic activity in satellite images, or to…

General Economics · Economics 2024-11-14 Melissa Dell

The ability to construct a realistic simulator of financial exchanges, including reproducing the dynamics of the limit order book, can give insight into many counterfactual scenarios, such as a flash crash, a margin call, or changes in…

Machine Learning · Computer Science 2023-11-28 Namid R. Stillman , Rory Baggott , Justin Lyon , Jianfei Zhang , Dingqiu Zhu , Tao Chen , Perukrishnen Vytelingum