Hello Gopi,

thanks for the clarification, so to me, this sounds like different reward 
functions but in
the same environment. So I guess the way I would integrate such a task into the 
existing
codebase is to add a separate task for each scenario. Maybe you have another 
idea?

> Regarding the first idea, I will soon implement a basic structure and make a 
> PR, I will
> also send a detailed mail of what I am planning regarding the pre-processing 
> tool.

Sounds good.

Thanks,
Marcus


> On 10. Mar 2021, at 01:09, Gopi Manohar Tatiraju <[email protected]> 
> wrote:
> 
> Heyy Marcus Edel,
> 
> Thanks for your feedback. 
> 
> When we frame trading as an RL problem on the surface it seems like the goal 
> of the agent is to maximize the net worth. But there are many ways to reach 
> this goal and there are different groups of people who work on different 
> principles. 
> 
> Let's compare some:
> Day trader: The goal of any day trader is to maximize his profit but also 
> minimize the risk (Trading 101: Always cap your losses). So for this 
> use-case, we want to encourage the agent to use something called stop-loss. 
> So more reward should be given to trades that are made with stop-loss rather 
> than to the trades which are made without stop-loss. This will make sure that 
> our agents learn to cover their losses, which is very important in a 
> real-world scenario.
> Institutional Traders: These guys consider VWAP(Volume Weighted Average 
> Pricing) as the best price on which they can acquire the stocks. So 
> regardless of what the current price is these guys always try to buy at VWAP 
> only. So for cases like this, we can polarize for not following VWAP, thus 
> making it understandable that VWAP is the best price.
> 
> Different reward_schemes will be tailored for different use-cases. Based on 
> how one wants to trade he can choose different reward schemes.
> 
> Regarding the first idea, I will soon implement a basic structure and make a 
> PR, I will also send a detailed mail of what I am planning regarding the 
> pre-processing tool.
> 
> Let me know if you have any more doubts regarding reward_schemes or anything 
> else.
> 
> Thanks,
> Gopi
> 
> On Wed, Mar 10, 2021 at 5:37 AM Marcus Edel <[email protected] 
> <mailto:[email protected]>> wrote:
> Hello Gopi M. Tatiraju,
> 
> thanks for reaching out; I like both ideas, I can see the first idea would
> integrate perfectly into the preprocessing pipeline; that said, it would be
> useful to discuss the project's scope in more detail. Specifically, what
> functionality you like to add, in #2727 you already implemented some
> features, so I'm curious to hear what other features you have in mind.
> 
> The RL idea sounds interesting as well, and I think could also fit into the
> RL codebase that is already there. I'm curious what do you mean with
> "rewards schemes"?
> 
> Thanks,
> Marcus
> 
>> On 9. Mar 2021, at 14:55, Gopi Manohar Tatiraju <[email protected] 
>> <mailto:[email protected]>> wrote:
>> 
>> Hello mlpack,
>> 
>> I am Gopi Manohar Tatiraju currently in my final year of Engineering from 
>> India. 
>> 
>> I've been working on mlpack for quite some time now. I've tried to 
>> contribute and learn from the community. I've received ample support from 
>> the community which made learning really fun.
>> 
>> Now, as GSoC is back with its 2021 edition, I want to take this opportunity 
>> to learn from the mentors and contribute to the community.
>> 
>> I am planning to contribute to mlapck under GSoC 2021. Currently, I am 
>> working on creating a pandas dataframe-like class that can be used to 
>> analyze the datasets in a better way. 
>> 
>> Having a class like this would help in working with datasets as ml is not 
>> only about the model but about data as well. 
>> 
>> I have a pr already open for this: 
>> https://github.com/mlpack/mlpack/pull/2727 
>> <https://github.com/mlpack/mlpack/pull/2727> 
>> 
>> I wanted to know if I can work on this in GSoC? As it was not listed on the 
>> idea page, but I think this would be a start to something useful and big.
>> 
>> If this idea doesn't seem workable right now, I want to implement RL 
>> Environments for Trading and some working examples for each env.
>>  
>> What all exactly I am planning to implement are the building blocks of any 
>> RL system:
>> rewards schemes
>> action schemes
>> env
>> 
>> Fin-Tech is a growing field, and there is a lot of application of Deep-Q 
>> Learning there. 
>> 
>> I am planning to implement different strategies like Bull-Sell-Hold, Long 
>> only, Short only...
>> This will make example-repo rich in terms of DRL examples...
>> We can even build a small backtesting module that can be used to run 
>> backtest on our predictions.
>> 
>> There are some libraries that are currently working on such models in 
>> python, we can use it as a reference to go forward.
>> FinRL: https://github.com/AI4Finance-LLC/FinRL-Library 
>> <https://github.com/AI4Finance-LLC/FinRL-Library>
>> 
>> Planning to implement: 
>> 
>> Different types of envs for different kind of financial tasks:
>> single stock trading env
>> multi stock trading env
>> portfolio selection env
>> Some example env in python: 
>> https://github.com/AI4Finance-LLC/FinRL-Library/tree/master/finrl/env 
>> <https://github.com/AI4Finance-LLC/FinRL-Library/tree/master/finrl/env>
>> 
>> Different types of action_schemes:
>> make only long trades
>> make only short trades
>> make both long and short
>> BHS(Buy Hold Sell)
>> Example action_schemes: 
>> https://github.com/tensortrade-org/tensortrade/blob/master/tensortrade/env/default/actions.py
>>  
>> <https://github.com/tensortrade-org/tensortrade/blob/master/tensortrade/env/default/actions.py>
>> 
>> We can see class BHS, SimpleOrder, etc.
>> 
>> Different types of reward_schemes:
>> simple reward
>> risk-adjusted reward
>> position based reward
>> 
>> For the past 3 months, I've been working as an ML Researcher in a Fin-Tech 
>> startup and have worked on this only. 
>>  
>> I would love to hear your feedback and suggestions.
>> 
>> Regards.
>> Gopi M. Tatiraju
>> _______________________________________________
>> mlpack mailing list
>> [email protected] <mailto:[email protected]>
>> http://knife.lugatgt.org/cgi-bin/mailman/listinfo/mlpack 
>> <http://knife.lugatgt.org/cgi-bin/mailman/listinfo/mlpack>
> 

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