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Reinforcement Learning (RL) has shown great potential in complex control tasks, particularly when combined with deep neural networks within the Actor-Critic (AC) framework. However, in practical applications, balancing exploration, learning…

Robotics · Computer Science 2026-02-25 Zhiwei Shang , Xinyi Yuan , Wenjun Huang , Yunduan Cui , Di Chen , Meixin Zhu

Soft Actor-Critic (SAC) is an off-policy actor-critic reinforcement learning algorithm, essentially based on entropy regularization. SAC trains a policy by maximizing the trade-off between expected return and entropy (randomness in the…

Machine Learning · Computer Science 2021-09-27 Chayan Banerjee , Zhiyong Chen , Nasimul Noman

We present a method for finding optimal hedging policies for arbitrary initial portfolios and market states. We develop a novel actor-critic algorithm for solving general risk-averse stochastic control problems and use it to learn hedging…

Computational Finance · Quantitative Finance 2022-07-18 Phillip Murray , Ben Wood , Hans Buehler , Magnus Wiese , Mikko S. Pakkanen

Reinforcement learning has been proven to be highly effective in handling complex control tasks. Traditional methods typically use unimodal distributions, such as Gaussian distributions, to model the output of value distributions. However,…

Machine Learning · Computer Science 2025-07-14 Tong Liu , Yinuo Wang , Xujie Song , Wenjun Zou , Liangfa Chen , Likun Wang , Bin Shuai , Jingliang Duan , Shengbo Eben Li

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

Soft Actor-Critic (SAC) is one of the state-of-the-art off-policy reinforcement learning (RL) algorithms that is within the maximum entropy based RL framework. SAC is demonstrated to perform very well in a list of continous control tasks…

Machine Learning · Computer Science 2021-12-22 Zhenyang Shi , Surya P. N. Singh

Atomic-scale materials synthesis via layer deposition techniques present a unique opportunity to control material structures and yield systems that display unique functional properties that cannot be stabilized using traditional bulk…

Computational Physics · Physics 2020-06-30 Siyan Liu , Nikolay Borodinov , Lukas Vlcek , Dan Lu , Nouamane Laanait , Rama K. Vasudevan

Deep reinforcement learning has made significant progress in robotic manipulation tasks and it works well in the ideal disturbance-free environment. However, in a real-world environment, both internal and external disturbances are…

Robotics · Computer Science 2020-11-09 Pingcheng Jian , Chao Yang , Di Guo , Huaping Liu , Fuchun Sun

The problem of how to take the right actions to make profits in sequential process continues to be difficult due to the quick dynamics and a significant amount of uncertainty in many application scenarios. In such complicated environments,…

Machine Learning · Computer Science 2023-10-03 Zhendong Shi , Xiaoli Wei , Ercan E. Kuruoglu

In reinforcement learning (RL), function approximation errors are known to easily lead to the Q-value overestimations, thus greatly reducing policy performance. This paper presents a distributional soft actor-critic (DSAC) algorithm, which…

Machine Learning · Computer Science 2021-06-14 Jingliang Duan , Yang Guan , Shengbo Eben Li , Yangang Ren , Bo Cheng

Multi-agent control problems constitute an interesting area of application for deep reinforcement learning models with continuous action spaces. Such real-world applications, however, typically come with critical safety constraints that…

Machine Learning · Computer Science 2021-08-12 Ziyad Sheebaelhamd , Konstantinos Zisis , Athina Nisioti , Dimitris Gkouletsos , Dario Pavllo , Jonas Kohler

We develop a deep reinforcement learning framework for dynamic portfolio optimization that combines a Dirichlet policy with cross-sectional attention mechanisms. The Dirichlet formulation ensures that portfolio weights are always feasible,…

Computational Engineering, Finance, and Science · Computer Science 2025-10-09 Pei Xue , Yuanchun Ye

Portfolio management aims at maximizing the return on investment while minimizing risk by continuously reallocating the assets forming the portfolio. These assets are not independent but correlated during a short time period. A graph…

Computational Finance · Quantitative Finance 2021-05-19 Farzan Soleymani , Eric Paquet

Although robotic applications increasingly demand versatile and dynamic object handling, most existing techniques are predominantly focused on grasp-based manipulation, limiting their applicability in non-prehensile tasks. To address this…

Robotics · Computer Science 2025-02-25 Hamidreza Raei , Elena De Momi , Arash Ajoudani

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

Deep Reinforcement Learning solutions have been applied to different control problems with outperforming and promising results. In this research work we have applied Proximal Policy Optimization, Soft Actor-Critic and Generative Adversarial…

Trading and Market Microstructure · Quantitative Finance 2022-01-19 Mohsen Asgari , Seyed Hossein Khasteh

Model-free deep reinforcement learning (RL) algorithms have been demonstrated on a range of challenging decision making and control tasks. However, these methods typically suffer from two major challenges: very high sample complexity and…

Machine Learning · Computer Science 2018-08-10 Tuomas Haarnoja , Aurick Zhou , Pieter Abbeel , Sergey Levine

Dynamic Portfolio optimization is the process of distribution and rebalancing of a fund into different financial assets such as stocks, cryptocurrencies, etc, in consecutive trading periods to maximize accumulated profits or minimize risks…

Portfolio Management · Quantitative Finance 2021-02-15 Kumar Yashaswi

The optimal asset allocation between risky and risk-free assets is a persistent challenge due to the inherent volatility in financial markets. Conventional methods rely on strict distributional assumptions or non-additive reward ratios,…

Portfolio Management · Quantitative Finance 2026-01-06 Rongwei Liu , Jin Zheng , John Cartlidge

There has been a recent surge in interest in the application of artificial intelligence to automated trading. Reinforcement learning has been applied to single- and multi-instrument use cases, such as market making or portfolio management.…

Trading and Market Microstructure · Quantitative Finance 2020-04-16 Jonathan Sadighian