arXiv:2607. 04278v1 Announce Type: cross Abstract: We propose the first deep learning algorithm, the Certainty Equivalent Learning (CEL) algorithm, for solving high-dimensional discrete-time dynamic programming problems with recursive utility.
By Xianhua Peng, Wu Guo
arXiv:2608. 04305v1 Announce Type: new Abstract: Risk-aware Q-learning (RaQL) provides a model-free, two-timescale estimator for dynamic risk objectives, but its finite-budget behavior remains fragile: fixed inner-loop hyperparameters can produce unstable value estimates, persistent Bellman residuals, and inefficient sample reuse.
By Yifan Wu, Junjie Lei, Wenjie Huang
arXiv:2606. 04420v1 Announce Type: new Abstract: Physics-informed neural networks (PINNs) approximate solutions of ODEs and PDEs by minimising a weighted combination of residual, boundary, initial, and data losses.
By Anna Lazareva, Alexander Tarakanov
Artificial Intelligence now underpins investment workflows from data and prediction to execution and tool use, yet its technical prowess does not automatically translate into profitability. A comprehensive review of public research up to 31 August 2026 across equities, ETFs, crypto spot, perpetual futures, and on‑chain markets shows real progress in prediction, text processing, portfolio design, and workflow integration, but evidence for durable net performance remains thin. The study highlights that factors such as temporal contamination, survivorship bias, weak benchmarks, implementation costs, and venue mechanics can erode alpha, and no single AI architecture has proven to deliver persistent, cross‑regime, capacity‑aware net alpha.
"whyItMatters":"The findings underscore that while AI advances are evident, investors must rigorously test and govern AI systems to avoid overestimating their profitability potential."
By Linsen Zhu, Mengqing Cai
arXiv:2605.28853v2 Announce Type: replace-cross
Abstract: Portfolio optimization in real-world financial markets is notoriously difficult due to non-stationarity, noisy data, and high transaction cos...
By Rahul Fernandes, Travis Desell
arXiv:2512. 14967v2 Announce Type: replace Abstract: We present a novel numerical method for solving McKean--Vlasov forward--backward stochastic differential equations (MV--FBSDEs) with common noise, combining Picard iterations, elicitability and deep learning.
By Felipe J. P. Antunes, Yuri F. Saporito, Sebastian Jaimungal