Can Artificial Intelligence Trade the Stock Market?

• URL: http://arxiv.org/abs/2506.04658v1
• Date: Thu, 05 Jun 2025 05:59:10 GMT
• Title: Can Artificial Intelligence Trade the Stock Market?
• Authors: Jędrzej Maskiewicz, Paweł Sakowski,
• Abstract summary: The paper explores the use of Deep Reinforcement Learning (DRL) in stock market trading, focusing on two algorithms: Double Deep Q-Network (DDQN) and Proximal Policy Optimization (PPO)<n>It evaluates these algorithms across three currency pairs, the S&P 500 index and Bitcoin, on the daily data in the period of 2019-2023.<n>The results demonstrate DRL's effectiveness in trading and its ability to manage risk by strategically avoiding trades in unfavorable conditions.
• Score: 0.0
• License: http://creativecommons.org/licenses/by-nc-nd/4.0/
• Abstract: The paper explores the use of Deep Reinforcement Learning (DRL) in stock market trading, focusing on two algorithms: Double Deep Q-Network (DDQN) and Proximal Policy Optimization (PPO) and compares them with Buy and Hold benchmark. It evaluates these algorithms across three currency pairs, the S&P 500 index and Bitcoin, on the daily data in the period of 2019-2023. The results demonstrate DRL's effectiveness in trading and its ability to manage risk by strategically avoiding trades in unfavorable conditions, providing a substantial edge over classical approaches, based on supervised learning in terms of risk-adjusted returns.

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