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Dec 31

Deep Reinforcement Learning for ESG financial portfolio management

This paper investigates the application of Deep Reinforcement Learning (DRL) for Environment, Social, and Governance (ESG) financial portfolio management, with a specific focus on the potential benefits of ESG score-based market regulation. We leveraged an Advantage Actor-Critic (A2C) agent and conducted our experiments using environments encoded within the OpenAI Gym, adapted from the FinRL platform. The study includes a comparative analysis of DRL agent performance under standard Dow Jones Industrial Average (DJIA) market conditions and a scenario where returns are regulated in line with company ESG scores. In the ESG-regulated market, grants were proportionally allotted to portfolios based on their returns and ESG scores, while taxes were assigned to portfolios below the mean ESG score of the index. The results intriguingly reveal that the DRL agent within the ESG-regulated market outperforms the standard DJIA market setup. Furthermore, we considered the inclusion of ESG variables in the agent state space, and compared this with scenarios where such data were excluded. This comparison adds to the understanding of the role of ESG factors in portfolio management decision-making. We also analyze the behaviour of the DRL agent in IBEX 35 and NASDAQ-100 indexes. Both the A2C and Proximal Policy Optimization (PPO) algorithms were applied to these additional markets, providing a broader perspective on the generalization of our findings. This work contributes to the evolving field of ESG investing, suggesting that market regulation based on ESG scoring can potentially improve DRL-based portfolio management, with significant implications for sustainable investing strategies.

  • 3 authors
·
Jun 19, 2023

Deep-Reinforcement-Learning-Based Distributed Vehicle Position Controls for Coverage Expansion in mmWave V2X

In millimeter wave (mmWave) vehicular communications, multi-hop relay disconnection by line-of-sight (LOS) blockage is a critical problem, especially in the early diffusion phase of mmWave-available vehicles, where not all the vehicles have mmWave communication devices. This paper proposes a distributed position control method for autonomous vehicles to make long relays connecting to road side units (RSUs) by avoiding blockages to communicate with each other via LOS paths. Even though vehicles with the proposed method do not use the whole information of the environments and cooperate with each other, they can decide their action (e.g., lane change and overtaking) to form long relays using only information of its surroundings (e.g., surrounding vehicle positions). The decision-making problem is formulated as a Markov decision process so that autonomous vehicles can learn a practical movement strategy of making long relays by a reinforcement learning (RL) algorithm. This paper designs a learning algorithm based on a sophisticated deep reinforcement learning algorithm, asynchronous advantage actor-critic (A3C), which enables vehicles to learn a complex movement strategy quickly by its deepneural-network architecture and multi-agent-learning mechanism. Once the strategy is well trained, vehicles can distributedly move to positions where the long relay to the RSU is established. Simulations results confirm that the proposed method can increase the relay length and coverage even if the traffic conditions and penetration ratio of mmWave communication devices in learning and operation phases are different.

  • 4 authors
·
Oct 26, 2018

Symphony: A Heuristic Normalized Calibrated Advantage Actor and Critic Algorithm in application for Humanoid Robots

In our work we not explicitly hint that it is a misconception to think that humans learn fast. Learning process takes time. Babies start learning to move in the restricted liquid area called placenta. Children often are limited by underdeveloped body. Even adults are not allowed to participate in complex competitions right away. However, with robots, when learning from scratch, we often don't have the privilege of waiting for dozen millions of steps. "Swaddling" regularization is responsible for restraining an agent in rapid but unstable development penalizing action strength in a specific way not affecting actions directly. The Symphony, Transitional-policy Deterministic Actor and Critic algorithm, is a concise combination of different ideas for possibility of training humanoid robots from scratch with Sample Efficiency, Sample Proximity and Safety of Actions in mind. It is no secret that continuous increase in Gaussian noise without appropriate smoothing is harmful for motors and gearboxes. Compared to Stochastic algorithms, we set a limited parametric noise and promote a reduced strength of actions, safely increasing entropy, since the actions are kind of immersed in weaker noise. When actions require more extreme values, actions rise above the weak noise. Training becomes empirically much safer for both the environment around and the robot's mechanisms. We use Fading Replay Buffer: using a fixed formula containing the hyperbolic tangent, we adjust the batch sampling probability: the memory contains a recent memory and a long-term memory trail. Fading Replay Buffer allows us to use Temporal Advantage when we improve the current Critic Network prediction compared to the exponential moving average. Temporal Advantage allows us to update Actor and Critic in one pass, as well as combine Actor and Critic in one Object and implement their Losses in one line.

  • 6 authors
·
Dec 11

Two-Stage Constrained Actor-Critic for Short Video Recommendation

The wide popularity of short videos on social media poses new opportunities and challenges to optimize recommender systems on the video-sharing platforms. Users sequentially interact with the system and provide complex and multi-faceted responses, including watch time and various types of interactions with multiple videos. One the one hand, the platforms aims at optimizing the users' cumulative watch time (main goal) in long term, which can be effectively optimized by Reinforcement Learning. On the other hand, the platforms also needs to satisfy the constraint of accommodating the responses of multiple user interactions (auxiliary goals) such like, follow, share etc. In this paper, we formulate the problem of short video recommendation as a Constrained Markov Decision Process (CMDP). We find that traditional constrained reinforcement learning algorithms can not work well in this setting. We propose a novel two-stage constrained actor-critic method: At stage one, we learn individual policies to optimize each auxiliary signal. At stage two, we learn a policy to (i) optimize the main signal and (ii) stay close to policies learned at the first stage, which effectively guarantees the performance of this main policy on the auxiliaries. Through extensive offline evaluations, we demonstrate effectiveness of our method over alternatives in both optimizing the main goal as well as balancing the others. We further show the advantage of our method in live experiments of short video recommendations, where it significantly outperforms other baselines in terms of both watch time and interactions. Our approach has been fully launched in the production system to optimize user experiences on the platform.

  • 12 authors
·
Feb 3, 2023

Improving Multi-Step Reasoning Abilities of Large Language Models with Direct Advantage Policy Optimization

The role of reinforcement learning (RL) in enhancing the reasoning of large language models (LLMs) is becoming increasingly significant. Despite the success of RL in many scenarios, there are still many challenges in improving the reasoning of LLMs. One challenge is the sparse reward, which makes optimization difficult for RL and necessitates a large amount of data samples. Another challenge stems from the inherent instability of RL, particularly when using Actor-Critic (AC) methods to derive optimal policies, which often leads to unstable training processes. To address these issues, we introduce Direct Advantage Policy Optimization (DAPO), an novel step-level offline RL algorithm. Unlike standard alignment that rely solely outcome rewards to optimize policies (such as DPO), DAPO employs a critic function to predict the reasoning accuracy at each step, thereby generating dense signals to refine the generation strategy. Additionally, the Actor and Critic components in DAPO are trained independently, avoiding the co-training instability observed in standard AC algorithms like PPO. We train DAPO on mathematical and code query datasets and then evaluate its performance on multiple benchmarks. Our results show that DAPO can effectively enhance the mathematical and code capabilities on both SFT models and RL models, demonstrating the effectiveness of DAPO.

  • 8 authors
·
Dec 24, 2024

Fine-tuning Flow Matching Generative Models with Intermediate Feedback

Flow-based generative models have shown remarkable success in text-to-image generation, yet fine-tuning them with intermediate feedback remains challenging, especially for continuous-time flow matching models. Most existing approaches solely learn from outcome rewards, struggling with the credit assignment problem. Alternative methods that attempt to learn a critic via direct regression on cumulative rewards often face training instabilities and model collapse in online settings. We present AC-Flow, a robust actor-critic framework that addresses these challenges through three key innovations: (1) reward shaping that provides well-normalized learning signals to enable stable intermediate value learning and gradient control, (2) a novel dual-stability mechanism that combines advantage clipping to prevent destructive policy updates with a warm-up phase that allows the critic to mature before influencing the actor, and (3) a scalable generalized critic weighting scheme that extends traditional reward-weighted methods while preserving model diversity through Wasserstein regularization. Through extensive experiments on Stable Diffusion 3, we demonstrate that AC-Flow achieves state-of-the-art performance in text-to-image alignment tasks and generalization to unseen human preference models. Our results demonstrate that even with a computationally efficient critic model, we can robustly finetune flow models without compromising generative quality, diversity, or stability.

  • 5 authors
·
Oct 20

Exploiting Tree Structure for Credit Assignment in RL Training of LLMs

Reinforcement learning improves LLM reasoning, yet sparse delayed reward over long sequences makes token-level credit assignment the key bottleneck. We study the verifiable-reward setting, where the final answer is checkable and multiple responses can be drawn per prompt. Reasoning tasks in math and medical QA align with this setup, where only a few decision tokens significantly impact the outcome. PPO offers token-level advantages with a learned value model, but it is complex to train both the actor and critic models simultaneously, and it is not easily generalizable, as the token-level values from the critic model can make training prone to overfitting. GRPO is critic-free and supports verifiable rewards, but spreads a single sequence-level return across tokens and ignores branching. We introduce Prefix-to-Tree (P2T), a simple procedure that converts a group of responses into a prefix tree and computes nonparametric prefix values \(V(s)\) by aggregating descendant outcomes. Built on P2T, we propose TEMPO (\textbf{Tree-Estimated Mean Prefix Value for Policy Optimization}), a critic-free algorithm that augments the group-relative outcome signal of GRPO with branch-gated temporal-difference corrections derived from the tree. At non-branch tokens, the temporal-difference (TD) term is zero, so TEMPO reduces to GRPO; at branching tokens, it supplies precise token-level credit without a learned value network or extra judges/teachers. On Qwen3-1.7B/4B, TEMPO outperforms PPO and GRPO on in-distribution (MATH, MedQA) and out-of-distribution (GSM-HARD, AMC23, MedMCQA, MMLU-Medical) benchmarks, and reaches higher validation accuracy with roughly the same wall-clock time.

  • 3 authors
·
Sep 22