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We extend the Q-learner in Black-Scholes (QLBS) framework by incorporating risk aversion and trading costs, and propose a novel Replication Learning of Option Pricing (RLOP) approach. Both methods are fully compatible with standard…

Pricing of Securities · Quantitative Finance 2026-01-06 Ziheng Chen , Minxuan Hu , Jiayu Yi , Wenxi Sun

With the increasing power of computers and the rapid development of self-learning methodologies such as machine learning and artificial intelligence, the problem of constructing an automatic Financial Trading Systems (FTFs) becomes an…

Trading and Market Microstructure · Quantitative Finance 2019-08-29 Haoqian Li , Thomas Lau

Reinforcement learning in complex environments is a challenging problem. In particular, the success of reinforcement learning algorithms depends on a well-designed reward function. Inverse reinforcement learning (IRL) solves the problem of…

Machine Learning · Computer Science 2021-01-20 Rakhoon Hwang , Hanjin Lee , Hyung Ju Hwang

Reinforcement learning (RL)-based driver assistance systems seek to improve fuel consumption via continual improvement of powertrain control actions considering experiential data from the field. However, the need to explore diverse…

Robotics · Computer Science 2023-01-04 Habtamu Hailemichael , Beshah Ayalew , Lindsey Kerbel , Andrej Ivanco , Keith Loiselle

Demand response providers (DRPs) are intermediaries between the upper-level distribution system operator and the lower-level participants in demand response (DR) programs. Usually, DRPs act as leaders and determine electricity pricing…

Systems and Control · Electrical Eng. & Systems 2025-09-04 Xin Li , Li Ding , Qiao Lin , Zhen-Wei Yu

Machine learning force fields (MLFFs) promise to accurately describe the potential energy surface of molecules at the ab initio level of theory with improved computational efficiency. Within MLFFs, equivariant graph neural networks (EQNNs)…

Chemical Physics · Physics 2025-05-15 Orlando A. Mendible , Jonathan K. Whitmer , Yamil J. Colón

Visible Light Communication (VLC) has been widely investigated during the last decade due to its ability to provide high data rates with low power consumption. In general, resource management is an important issue in cellular networks that…

Networking and Internet Architecture · Computer Science 2021-05-25 Abdelrahman S. Elgamal , Osama Z. Alsulami , Ahmad Adnan Qidan , Taisir E. H. El-Gorashi , Jaafar M. H. Elmirghani

Traditional bulk load flexibility options, such as load shifting and load curtailment, for managing uncertainty in power markets limit the diversity of options and ignore the preferences of the individual loads, thus reducing efficiency and…

Systems and Control · Electrical Eng. & Systems 2021-12-20 Majid Majidi , Deepan Muthirayan , Masood Parvania , Pramod P. Khargonekar

In this paper, we provide two new stable online algorithms for the problem of prediction in reinforcement learning, \emph{i.e.}, estimating the value function of a model-free Markov reward process using the linear function approximation…

Machine Learning · Computer Science 2018-06-19 Ajin George Joseph , Shalabh Bhatnagar

Vertical Cavity Surface Emitting Lasers (VCSELs) have demonstrated suitability for data transmission in indoor optical wireless communication (OWC) systems due to the high modulation bandwidth and low manufacturing cost of these sources.…

Signal Processing · Electrical Eng. & Systems 2021-06-23 Abdelrahman S. Elgamal , Osama Z. Alsulami , Ahmad Adnan Qidan , Taisir E. H. El-Gorashi , Jaafar M. H. Elmirghani

This paper presents a capacity-constrained incentive-based demand response approach for residential smart grids. It aims to maintain electricity grid capacity limits and prevent congestion by financially incentivising end users to reduce or…

Machine Learning · Computer Science 2026-02-19 Shafagh Abband Pashaki , Sepehr Maleki , Amir Badiee

Reinforcement Learning (RL) in environments with complex, history-dependent reward structures poses significant challenges for traditional methods. In this work, we introduce a novel approach that leverages automaton-based feedback to guide…

Machine Learning · Computer Science 2025-10-20 Mahyar Alinejad , Alvaro Velasquez , Yue Wang , George Atia

Cold atom traps are at the heart of many quantum applications in science and technology. The preparation and control of atomic clouds involves complex optimization processes, that could be supported and accelerated by machine learning. In…

Quantum Gases · Physics 2023-06-30 Malte Reinschmidt , József Fortágh , Andreas Günther , Valentin Volchkov

The demand response (DR) program of a traditional HEMS usually intervenes appliances by controlling or scheduling them to achieve multiple objectives such as minimizing energy cost and maximizing user comfort. In this study, instead of…

Systems and Control · Electrical Eng. & Systems 2021-11-04 Huy Truong Dinh , Kyu-haeng Lee , Daehee Kim

Accurate electricity price forecasting (EPF) is crucial for effective decision-making in power trading on the spot market. While recent advances in generative artificial intelligence (GenAI) and pre-trained large language models (LLMs) have…

Machine Learning · Computer Science 2025-08-21 Timothée Hornek Amir Sartipi , Igor Tchappi , Gilbert Fridgen

We investigate the use of Reinforcement Learning for the optimal execution of meta-orders, where the objective is to execute incrementally large orders while minimizing implementation shortfall and market impact over an extended period of…

Trading and Market Microstructure · Quantitative Finance 2025-11-20 Tomas Espana , Yadh Hafsi , Fabrizio Lillo , Edoardo Vittori

Buildings sector is one of the major consumers of energy in the United States. The buildings HVAC (Heating, Ventilation, and Air Conditioning) systems, whose functionality is to maintain thermal comfort and indoor air quality (IAQ), account…

Systems and Control · Electrical Eng. & Systems 2021-03-24 Chi Zhang , Sanmukh R. Kuppannagari , Rajgopal Kannan , Viktor K. Prasanna

Reinforcement learning (RL) for exponential-utility optimization in discounted Markov decision processes (MDPs) lacks principled value-based algorithms. We address this gap in the fixed risk-aversion setting. Building on the Bellman-type…

Machine Learning · Computer Science 2026-05-11 Gugan Thoppe , L. A. Prashanth , Ankur Naskar , Sanjay Bhat

In recent years, quantitative investment methods combined with artificial intelligence have attracted more and more attention from investors and researchers. Existing related methods based on the supervised learning are not very suitable…

Machine Learning · Computer Science 2021-05-11 Sihang Chen , Weiqi Luo , Chao Yu

This paper presents a method for learning logical task specifications and cost functions from demonstrations. Constructing specifications by hand is challenging for complex objectives and constraints in autonomous systems. Instead, we…

Machine Learning · Computer Science 2022-09-21 Tianyu Wang , Nikolay Atanasov
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