Neural networks are easy (Part 59): Dichotomy of Control (DoC)
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, 09-15-2024 at 09:51 AM (137 Views)
more...The financial markets industry is a complex and multifaceted environment. Every event and action have their roots in economic fundamental processes. The reason for certain events can be found in the news, geopolitical events, various technical aspects and many other factors. Quite often, we observe such dependencies after they happen. While analyzing the market situation, we observe only a small part of these factors. This in general makes financial markets a rather difficult environment to analyze. But still, we highlight some of the most significant tools that can detect the main trends. Other factors are attributed to environmental stochasticity.
In such a complex environment, reinforcement learning represents a powerful tool for developing strategies in financial markets. However, existing methods, such as Decision Transformer, may not be adaptive enough in highly stochastic environments. This is what we observed in the practical part of the previous article.