Using reinforcement learning for portfolio management has great potential, but asset managers need to think carefully about its weaknesses as well as its strengths. Vineet Naik writes.
A new paper, ‘Adversarial Deep Reinforcement Learning in Portfolio Management’ has suggested reinforcement learning could be used to help with portfolio management by investment firms. The research, conducted at Sun Yat-sen University in China, used the machine learning paradigm to model investing in the Chinese stock market. It found that, used correctly it could deliver positive results, however there are considerable risks that portfolio managers need to be aware of. Continue reading “AI for investors : Reinforcement learning for portfolio managers : Vineet Naik”