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Classical portfolio optimization often requires forecasting asset returns and their corresponding variances in spite of the low signal-to-noise ratio provided in the financial markets. Modern deep reinforcement learning (DRL) offers a…

Portfolio Management · Quantitative Finance 2023-05-19 Alessio Brini , Daniele Tantari

We study continuous-time mean--variance portfolio selection in markets where stock prices are diffusion processes driven by observable factors that are also diffusion processes, yet the coefficients of these processes are unknown. Based on…

Portfolio Management · Quantitative Finance 2026-03-31 Yilie Huang , Yanwei Jia , Xun Yu Zhou

Resource allocation plays a critical role in minimizing cycle time and improving the efficiency of business processes. Recently, Deep Reinforcement Learning (DRL) has emerged as a powerful technique to optimize resource allocation policies…

Machine Learning · Computer Science 2025-09-03 Jeroen Middelhuis , Zaharah Bukhsh , Ivo Adan , Remco Dijkman

The reward signal plays a central role in defining the desired behaviors of agents in reinforcement learning (RL). Rewards collected from realistic environments could be perturbed, corrupted, or noisy due to an adversary, sensor error, or…

Machine Learning · Computer Science 2025-03-12 Xi Chen , Zhihui Zhu , Andrew Perrault

With the fast development of quantitative portfolio optimization in financial engineering, lots of AI-based algorithmic trading strategies have demonstrated promising results, among which reinforcement learning begins to manifest…

Mathematical Finance · Quantitative Finance 2023-03-10 Huifang Huang , Ting Gao , Pengbo Li , Jin Guo , Peng Zhang , Nan Du

In this paper, we consider the problem of learning safe policies for probabilistic-constrained reinforcement learning (RL). Specifically, a safe policy or controller is one that, with high probability, maintains the trajectory of the agent…

Machine Learning · Computer Science 2024-03-14 Weiqin Chen , Dharmashankar Subramanian , Santiago Paternain

We develop a portfolio allocation framework that leverages deep learning techniques to address challenges arising from high-dimensional, non-stationary, and low-signal-to-noise market information. Our approach includes a dynamic embedding…

Portfolio Management · Quantitative Finance 2025-01-31 Jinghai He , Cheng Hua , Chunyang Zhou , Zeyu Zheng

Recent advances in reinforcement learning from human feedback (RLHF) and preference optimization have substantially improved the usability, coherence, and safety of large language models. However, recurring behaviors such as performative…

Artificial Intelligence · Computer Science 2026-05-13 William Parris

Action-conditioned robot world models generate future video frames of the manipulated scene given a robot action sequence, offering a promising alternative for simulating tasks that are difficult to model with traditional physics engines.…

Robotics · Computer Science 2026-03-27 Jai Bardhan , Patrik Drozdik , Josef Sivic , Vladimir Petrik

Reinforcement learning (RL) presents a promising framework to learn policies through environment interaction, but often requires an infeasible amount of interaction data to solve complex tasks from sparse rewards. One direction includes…

Machine Learning · Computer Science 2024-05-07 Stone Tao , Arth Shukla , Tse-kai Chan , Hao Su

Stochastic and (distributionally) robust optimization problems often become computationally challenging as the number of scenarios or data points increases. Scenario reduction is therefore a key technique for improving tractability. We…

Optimization and Control · Mathematics 2026-03-10 Kevin-Martin Aigner , Sebastian Denzler , Frauke Liers , Sebastian Pokutta , Kartikey Sharma

In-context reinforcement learning (ICRL) is an emerging RL paradigm where an agent, after pretraining, can adapt to out-of-distribution test tasks without any parameter updates, instead relying on an expanding context of interaction…

Machine Learning · Computer Science 2026-05-28 Amir Moeini , Minjae Kwon , Alper Kamil Bozkurt , Yuichi Motai , Rohan Chandra , Lu Feng , Shangtong Zhang

In this paper, we study the continuous-time multi-asset mean-variance (MV) portfolio selection using a reinforcement learning (RL) algorithm, specifically the soft actor-critic (SAC) algorithm, in the time-varying financial market. A family…

Mathematical Finance · Quantitative Finance 2025-05-13 Yu Li , Yuhan Wu , Shuhua Zhang

Recent Large Language Models (LLMs) and Large Vision-Language Models (LVLMs) increasingly use Reinforcement Learning (RL) for post-pretraining, such as RL with Verifiable Rewards (RLVR) for objective tasks and RL from Human Feedback (RLHF)…

Computer Vision and Pattern Recognition · Computer Science 2025-09-29 Ziyu Liu , Yuhang Zang , Shengyuan Ding , Yuhang Cao , Xiaoyi Dong , Haodong Duan , Dahua Lin , Jiaqi Wang

Outstanding claim liabilities are revised repeatedly as claims develop, yet most modern reserving models are trained as one-shot predictors and typically learn only from settled claims. We formulate individual claims reserving as a…

Risk Management · Quantitative Finance 2026-01-13 Benjamin Avanzi , Ronald Richman , Bernard Wong , Mario Wüthrich , Yagebu Xie

Artificial intelligence is transforming financial investment decision-making frameworks, with deep reinforcement learning demonstrating substantial potential in robo-advisory applications. This paper addresses the limitations of traditional…

Portfolio Management · Quantitative Finance 2025-02-24 Gang Huang , Xiaohua Zhou , Qingyang Song

Reinforcement Learning (RL) has shown significant promise in automated portfolio management; however, effectively balancing risk and return remains a central challenge, as many models fail to adapt to dynamically changing market conditions.…

Machine Learning · Computer Science 2025-12-04 Jiayi Chen , Jing Li , Guiling Wang

Offline reinforcement learning (RL) has emerged as a prevalent and effective methodology for real-world recommender systems, enabling learning policies from historical data and capturing user preferences. In offline RL, reward shaping…

Information Retrieval · Computer Science 2025-07-01 Wenzheng Shu , Yanxiang Zeng , Yongxiang Tang , Teng Sha , Ning Luo , Yanhua Cheng , Xialong Liu , Fan Zhou , Peng Jiang

Reinforcement learning (RL) is increasingly applied to real-world problems involving complex and structured decisions, such as routing, scheduling, and assortment planning. These settings challenge standard RL algorithms, which struggle to…

Machine Learning · Computer Science 2025-10-29 Heiko Hoppe , Léo Baty , Louis Bouvier , Axel Parmentier , Maximilian Schiffer

Reinforcement learning (RL) is gaining attention by more and more researchers in quantitative finance as the agent-environment interaction framework is aligned with decision making process in many business problems. Most of the current…

Mathematical Finance · Quantitative Finance 2022-05-31 Huifang Huang , Ting Gao , Yi Gui , Jin Guo , Peng Zhang