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We propose policy gradient algorithms which learn risk-sensitive policies in a reinforcement learning (RL) framework. Our proposed algorithms maximize the distortion risk measure (DRM) of the cumulative reward in an episodic Markov decision…

Machine Learning · Computer Science 2024-02-06 Nithia Vijayan , Prashanth L. A

Prompt learning has emerged as an effective technique for fine-tuning large-scale foundation models for downstream tasks. However, conventional prompt learning methods are prone to overfitting and can struggle with out-of-distribution…

Offline reinforcement learning (RL) is suitable for safety-critical domains where online exploration is too costly or dangerous. In such safety-critical settings, decision-making should take into consideration the risk of catastrophic…

Machine Learning · Computer Science 2023-10-31 Marc Rigter , Bruno Lacerda , Nick Hawes

This study addresses the problem of selecting dynamically, at each time instance, the ``optimal'' p-norm to combat outliers in linear adaptive filtering without any knowledge on the potentially time-varying probability distribution function…

Signal Processing · Electrical Eng. & Systems 2022-10-24 Minh Vu , Yuki Akiyama , Konstantinos Slavakis

Robust Markov decision processes (RMDPs) provide a promising framework for computing reliable policies in the face of model errors. Many successful reinforcement learning algorithms build on variations of policy-gradient methods, but…

Machine Learning · Computer Science 2024-05-15 Qiuhao Wang , Chin Pang Ho , Marek Petrik

Reinforcement learning (RL) algorithms still suffer from high sample complexity despite outstanding recent successes. The need for intensive interactions with the environment is especially observed in many widely popular policy gradient…

Machine Learning · Computer Science 2020-08-04 Samuele Tosatto , Joao Carvalho , Hany Abdulsamad , Jan Peters

Reinforcement learning (RL) techniques have shown great success in many challenging quantitative trading tasks, such as portfolio management and algorithmic trading. Especially, intraday trading is one of the most profitable and risky tasks…

Trading and Market Microstructure · Quantitative Finance 2022-08-23 Shuo Sun , Wanqi Xue , Rundong Wang , Xu He , Junlei Zhu , Jian Li , Bo An

We consider the problem of learning a control policy that is robust against the parameter mismatches between the training environment and testing environment. We formulate this as a distributionally robust reinforcement learning (DR-RL)…

Machine Learning · Computer Science 2023-05-23 Zaiyan Xu , Kishan Panaganti , Dileep Kalathil

Robust Markov decision processes (MDPs) aim to handle changing or partially known system dynamics. To solve them, one typically resorts to robust optimization methods. However, this significantly increases computational complexity and…

Machine Learning · Computer Science 2023-03-14 Esther Derman , Yevgeniy Men , Matthieu Geist , Shie Mannor

We study risk-sensitive RL where the goal is learn a history-dependent policy that optimizes some risk measure of cumulative rewards. We consider a family of risks called the optimized certainty equivalents (OCE), which captures important…

Machine Learning · Computer Science 2025-03-03 Kaiwen Wang , Dawen Liang , Nathan Kallus , Wen Sun

In many real-world reinforcement learning (RL) problems, besides optimizing the main objective function, an agent must concurrently avoid violating a number of constraints. In particular, besides optimizing performance it is crucial to…

Machine Learning · Computer Science 2018-05-22 Yinlam Chow , Ofir Nachum , Edgar Duenez-Guzman , Mohammad Ghavamzadeh

We present a reinforcement-learning (RL) framework for dynamic hedging of equity index option exposures under realistic transaction costs and position limits. We hedge a normalized option-implied equity exposure (one unit of underlying…

Portfolio Management · Quantitative Finance 2025-12-16 Travon Lucius , Christian Koch , Jacob Starling , Julia Zhu , Miguel Urena , Carrie Hu

We introduce a novel perspective on Bayesian reinforcement learning (RL); whereas existing approaches infer a posterior over the transition distribution or Q-function, we characterise the uncertainty in the Bellman operator. Our Bayesian…

Machine Learning · Computer Science 2021-06-17 Matthew Fellows , Kristian Hartikainen , Shimon Whiteson

Fairness plays a crucial role in various multi-agent systems (e.g., communication networks, financial markets, etc.). Many multi-agent dynamical interactions can be cast as Markov Decision Processes (MDPs). While existing research has…

Machine Learning · Computer Science 2023-06-02 Peizhong Ju , Arnob Ghosh , Ness B. Shroff

We study off-dynamics Reinforcement Learning (RL), where the policy training and deployment environments are different. To deal with this environmental perturbation, we focus on learning policies robust to uncertainties in transition…

Machine Learning · Computer Science 2024-10-01 Zhishuai Liu , Weixin Wang , Pan Xu

Modern navigation algorithms based on deep reinforcement learning (RL) show promising efficiency and robustness. However, most deep RL algorithms operate in a risk-neutral manner, making no special attempt to shield users from relatively…

Machine Learning · Computer Science 2021-04-12 Jinyoung Choi , Christopher R. Dance , Jung-eun Kim , Seulbin Hwang , Kyung-sik Park

The objective in a traditional reinforcement learning (RL) problem is to find a policy that optimizes the expected value of a performance metric such as the infinite-horizon cumulative discounted or long-run average cost/reward. In…

Machine Learning · Computer Science 2022-05-25 Prashanth L. A. , Michael Fu

Safe reinforcement learning (RL) aims to learn policies that satisfy certain constraints before deploying them to safety-critical applications. Previous primal-dual style approaches suffer from instability issues and lack optimality…

Machine Learning · Computer Science 2022-06-20 Zuxin Liu , Zhepeng Cen , Vladislav Isenbaev , Wei Liu , Zhiwei Steven Wu , Bo Li , Ding Zhao

Reinforcement learning (RL) provides a principled framework for decision-making in partially observable environments, which can be modeled as Markov decision processes and compactly represented through dynamic decision Bayesian networks.…

Quantum Physics · Physics 2025-07-25 Gilberto Cunha , Alexandra Ramôa , André Sequeira , Michael de Oliveira , Luís Barbosa

Personalized decision systems in healthcare and behavioral support often rely on static rule-based or engagement-maximizing heuristics that overlook users' emotional context and ethical constraints. Such approaches risk recommending…

Machine Learning · Computer Science 2025-11-14 Garapati Keerthana , Manik Gupta