LSTM-augmented DQN for quantitative trading in partially observable markets

Quantitative analysis is a technique for measuring the amount of specific constituents in a sample. When the sample's composition is unknown, qualitative analysis is performed first to identify its components, which ensures that the correct substances are measured during the quantitative phase.
In quantitative analysis, two key measurements are made: the sample quantity and a property proportional to the amount of the analyte (the substance being analyzed). This forms the basis of the...

The frequency-domain technique, commonly used in analyzing and designing feedback control systems, is effective for linear, time-invariant systems. However, it falls short when dealing with nonlinear, time-varying, and multiple-input multiple-output systems. The time-domain or state-space approach addresses these limitations by utilizing state variables to construct simultaneous, first-order differential equations, known as state equations, for an nth-order system.
Consider an RLC circuit, a...

Mechanistic models play a crucial role in algorithms for numerical problem-solving, particularly in nonlinear mixed effects modeling (NMEM). These models aim to minimize specific objective functions by evaluating various parameter estimates, leading to the development of systematic algorithms. In some cases, linearization techniques approximate the model using linear equations.
In individual population analyses, different algorithms are employed, such as Cauchy's method, which uses a...

Albert Bandura's observational learning, also known as imitation or modeling, occurs when a person observes and imitates another's behavior. It is a quicker process than operant conditioning. A well-known example is the Bobo doll study, where children who saw an adult acting aggressively towards the doll were more likely to act aggressively when left alone, compared to those who observed a nonaggressive adult. Many psychologists view observational learning as a form of latent learning...

Quadratic models are mathematical representations used to describe relationships in which the rate of change changes at a constant rate. These models appear in a wide variety of natural and engineered systems, especially those involving motion, forces, and optimization. One common application is analyzing the vertical motion of objects influenced by gravity, such as a ball thrown into the air.In such scenarios, the object's height changes over time in a curved pattern, rising to a maximum point...

Population dynamics can be described mathematically by considering the population size P(t) as a function of time. The rate of change of the population is then represented by the derivative of P(t). A simple assumption is that the rate of growth is proportional to the size of the population itself. This leads to an exponential growth model, where the population increases rapidly without bound. While this is a useful first approximation, it does not reflect realistic long-term...