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Related papers: An Efficient Machine Learning Framework for Option…

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We present a reinforcement learning (RL)-driven framework for optimizing block-preconditioner sizes in iterative solvers used in portfolio optimization and option pricing. The covariance matrix in portfolio optimization or the…

Portfolio Management · Quantitative Finance 2025-07-04 Hadi Keramati , Samaneh Jazayeri

Many real-world systems are modelled using complex ordinary differential equations (ODEs). However, the dimensionality of these systems can make them challenging to analyze. Dimensionality reduction techniques like Proper Orthogonal…

Computational Engineering, Finance, and Science · Computer Science 2025-02-26 Abhishek Ajayakumar , Soumyendu Raha

Multiple machine learning and prediction models are often used for the same prediction or recommendation task. In our recent work, where we develop and deploy airline ancillary pricing models in an online setting, we found that among…

Machine Learning · Computer Science 2019-05-23 Naman Shukla , Arinbjörn Kolbeinsson , Lavanya Marla , Kartik Yellepeddi

We introduce Hindsight Off-policy Options (HO2), a data-efficient option learning algorithm. Given any trajectory, HO2 infers likely option choices and backpropagates through the dynamic programming inference procedure to robustly train all…

In this paper, we propose a surrogate-assisted evolutionary algorithm (EA) for hyperparameter optimization of machine learning (ML) models. The proposed STEADE model initially estimates the objective function landscape using RadialBasis…

Neural and Evolutionary Computing · Computer Science 2020-12-14 Subhodip Biswas , Adam D Cobb , Andreea Sistrunk , Naren Ramakrishnan , Brian Jalaian

We consider minimizing functions for which it is expensive to compute the (possibly stochastic) gradient. Such functions are prevalent in reinforcement learning, imitation learning and adversarial training. Our target optimization framework…

Machine Learning · Computer Science 2023-06-09 Jonathan Wilder Lavington , Sharan Vaswani , Reza Babanezhad , Mark Schmidt , Nicolas Le Roux

Hyperparameter optimization (HPO) is generally treated as a bi-level optimization problem that involves fitting a (probabilistic) surrogate model to a set of observed hyperparameter responses, e.g. validation loss, and consequently…

Machine Learning · Computer Science 2021-10-18 Hadi S. Jomaa , Jonas Falkner , Lars Schmidt-Thieme

To achieve scenario intelligence, humans must transfer knowledge to robots by developing goal-oriented algorithms, which are sometimes insensitive to dynamically changing environments. While deep reinforcement learning achieves significant…

Artificial Intelligence · Computer Science 2018-07-31 Tingguang Li , Jin Pan , Delong Zhu , Max Q. -H. Meng

Sparse variational approximations are popular methods for scaling up inference and learning in Gaussian processes to larger datasets. For $N$ training points, exact inference has $O(N^3)$ cost; with $M \ll N$ features, state of the art…

Machine Learning · Statistics 2024-04-15 Talay M Cheema , Carl Edward Rasmussen

The central task in modeling complex dynamical systems is parameter estimation. This task involves numerous evaluations of a computationally expensive objective function. Surrogate-based optimization introduces a computationally efficient…

Machine Learning · Computer Science 2019-12-19 Žiga Lukšič , Jovan Tanevski , Sašo Džeroski , Ljupčo Todorovski

Efficiently pricing multi-asset options is a challenging problem in quantitative finance. When the characteristic function is available, Fourier-based methods are competitive compared to alternative techniques because the integrand in the…

Computational Finance · Quantitative Finance 2024-01-17 Michael Samet , Christian Bayer , Chiheb Ben Hammouda , Antonis Papapantoleon , Raúl Tempone

We propose a surrogate-based method for optimizing parameterized quantum circuits which is designed to operate with few calls to a quantum computer. We employ a computationally inexpensive classical surrogate to approximate the cost…

Traffic allocation is a process of redistributing natural traffic to products by adjusting their positions in the post-search phase, aimed at effectively fostering merchant growth, precisely meeting customer demands, and ensuring the…

Machine Learning · Computer Science 2024-07-23 Peng Cheng , Huimu Wang , Jinyuan Zhao , Yihao Wang , Enqiang Xu , Yu Zhao , Zhuojian Xiao , Songlin Wang , Guoyu Tang , Lin Liu , Sulong Xu

We present a multivariate stochastic volatility model with leverage, which is flexible enough to recapture the individual dynamics as well as the interdependencies between several assets while still being highly analytically tractable.…

Pricing of Securities · Quantitative Finance 2012-01-23 Johannes Muhle-Karbe , Oliver Pfaffel , Robert Stelzer

Offline optimization is an emerging problem in many experimental engineering domains including protein, drug or aircraft design, where online experimentation to collect evaluation data is too expensive or dangerous. To avoid that, one has…

Machine Learning · Computer Science 2024-05-10 Yassine Chemingui , Aryan Deshwal , Trong Nghia Hoang , Janardhan Rao Doppa

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

Gradient-free optimization methods, such as surrogate based optimization (SBO) methods, and genetic (GAs), or evolutionary (EAs) algorithms have gained popularity in the field of constrained optimization of expensive black-box functions.…

Optimization and Control · Mathematics 2021-07-22 Ahmed Abouhussein , Nusrat Islam , Yulia T. Peet

Surrogate Optimization (SO) algorithms have shown promise for optimizing expensive black-box functions. However, their performance is heavily influenced by hyperparameters related to sampling and surrogate fitting, which poses a challenge…

Machine Learning · Computer Science 2023-10-13 Nazanin Nezami , Hadis Anahideh

Climate simulations are essential in guiding our understanding of climate change and responding to its effects. However, it is computationally expensive to resolve complex climate processes at high spatial resolution. As one way to speed up…

Hyperparameter optimization is the process of identifying the appropriate hyperparameter configuration of a given machine learning model with regard to a given learning task. For smaller data sets, an exhaustive search is possible; However,…

Machine Learning · Computer Science 2022-09-30 Blaž Škrlj , Adi Schwartz , Jure Ferlež , Davorin Kopič , Naama Ziporin