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The adversarial vulnerability of deep neural networks (DNNs) has been actively investigated in the past several years. This paper investigates the scale-variant property of cross-entropy loss, which is the most commonly used loss function…

Machine Learning · Computer Science 2022-10-12 Ziquan Liu , Antoni B. Chan

Recurrent neural networks are capable of learning the dynamics of an unknown nonlinear system purely from input-output measurements. However, the resulting models do not provide any stability guarantees on the input-output mapping. In this…

Machine Learning · Computer Science 2022-12-19 Daniel Frank , Decky Aspandi Latif , Michael Muehlebach , Benjamin Unger , Steffen Staab

The need for consistent treatment of uncertainty has recently triggered increased interest in probabilistic deep learning methods. However, most current approaches have severe limitations when it comes to inference, since many of these…

This paper performs the numerical analysis and the computation of a Spread option in a market with imperfect liquidity. The number of shares traded in the stock market has a direct impact on the stock's price. Thus, we consider a…

Pricing of Securities · Quantitative Finance 2016-11-25 Ahmad Reza Yazdanian , T A Pirvu

Modern deep neural network (DNN) systems are highly configurable with large a number of options that significantly affect their non-functional behavior, for example inference time and energy consumption. Performance models allow to…

Machine Learning · Computer Science 2019-04-08 Md Shahriar Iqbal , Lars Kotthoff , Pooyan Jamshidi

The widespread use of Deep Neural Networks (DNNs) has recently resulted in their application to challenging scientific visualization tasks. While advanced DNNs demonstrate impressive generalization abilities, understanding factors like…

Graphics · Computer Science 2024-08-13 Atul Kumar , Siddharth Garg , Soumya Dutta

Exploration remains a critical issue in deep reinforcement learning for an agent to attain high returns in unknown environments. Although the prevailing exploration Random Network Distillation (RND) algorithm has been demonstrated to be…

Machine Learning · Computer Science 2024-05-21 Kai Yang , Jian Tao , Jiafei Lyu , Xiu Li

Neural network classifiers trained with cross-entropy loss achieve strong predictive accuracy but lack the capability to provide inherent predictive uncertainty estimates, thus requiring external techniques to obtain these estimates. In…

Machine Learning · Statistics 2026-04-08 Courtney Franzen , Farhad Pourkamali-Anaraki

Deep learning is increasingly being applied in safety-critical domains. For these scenarios it is important to know the level of uncertainty in a model's prediction to ensure appropriate decisions are made by the system. Deep ensembles are…

Machine Learning · Computer Science 2022-03-17 Yassir Fathullah , Mark J. F. Gales

Transfer learning have been frequently used to improve deep neural network training through incorporating weights of pre-trained networks as the starting-point of optimization for regularization. While deep transfer learning can usually…

Machine Learning · Computer Science 2019-11-19 Ruosi Wan , Haoyi Xiong , Xingjian Li , Zhanxing Zhu , Jun Huan

Training a deep neural network (DNN) often involves stochastic optimization, which means each run will produce a different model. Several works suggest this variability is negligible when models have the same performance, which in the case…

Machine Learning · Statistics 2023-10-03 Sinjini Banerjee , Reilly Cannon , Tim Marrinan , Tony Chiang , Anand D. Sarwate

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

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

Temporal-Difference learning (TD) [Sutton, 1988] with function approximation can converge to solutions that are worse than those obtained by Monte-Carlo regression, even in the simple case of on-policy evaluation. To increase our…

Machine Learning · Computer Science 2018-07-10 Hugo Penedones , Damien Vincent , Hartmut Maennel , Sylvain Gelly , Timothy Mann , Andre Barreto

The Black-Scholes model, defined under the assumption of a perfect financial market, theoretically creates a flawless hedging strategy allowing the trader to evade risks in a portfolio of options. However, the concept of a "perfect…

Computational Finance · Quantitative Finance 2021-12-21 Guijin Son , Joocheol Kim

Uncertainty quantification is an important part of many performance critical applications. This paper provides a simple alternative to existing approaches such as ensemble learning and bayesian neural networks. By directly modeling the loss…

Machine Learning · Computer Science 2024-08-28 Yi Hung Lim

Optimal execution is an important problem faced by any trader. Most solutions are based on the assumption of constant market impact, while liquidity is known to be dynamic. Moreover, models with time-varying liquidity typically assume that…

Trading and Market Microstructure · Quantitative Finance 2024-02-21 Andrea Macrì , Fabrizio Lillo

Distributed state estimation is examined for a sensor network tasked with reconstructing a system's state through the use of a distributed and event-triggered observer. Each agent in the sensor network employs a deep neural network (DNN) to…

Systems and Control · Electrical Eng. & Systems 2022-02-07 Federico M. Zegers , Runhan Sun , Girish Chowdhary , Warren E. Dixon

We present a neural network based calibration method that performs the calibration task within a few milliseconds for the full implied volatility surface. The framework is consistently applicable throughout a range of volatility models…

Mathematical Finance · Quantitative Finance 2019-08-26 Blanka Horvath , Aitor Muguruza , Mehdi Tomas

The application of machine learning in safety-critical systems requires a reliable assessment of uncertainty. However, deep neural networks are known to produce highly overconfident predictions on out-of-distribution (OOD) data. Even if…

Machine Learning · Computer Science 2022-10-19 Alexander Meinke , Julian Bitterwolf , Matthias Hein
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