DeepAries: Adaptive Rebalancing Interval Selection for Enhanced Portfolio Selection
Kim, Jinkyu, Yi, Hyunjung, Gim, Mogan, Choi, Donghee, Kang, Jaewoo
–arXiv.org Artificial Intelligence
We propose DeepAries , a novel deep reinforcement learning framework for dynamic portfolio management that jointly optimizes the timing and allocation of rebalancing decisions. Unlike prior reinforcement learning methods that employ fixed rebalancing intervals regardless of market conditions, DeepAries adaptively selects optimal rebalancing intervals along with portfolio weights to reduce unnecessary transaction costs and maximize risk-adjusted returns. Our framework integrates a Transformer-based state encoder, which effectively captures complex long-term market dependencies, with Proximal Policy Optimization (PPO) to generate simultaneous discrete (rebalancing intervals) and continuous (asset allocations) actions. Extensive experiments on multiple real-world financial markets demonstrate that DeepAries significantly outperforms traditional fixed-frequency and full-rebalancing strategies in terms of risk-adjusted returns, transaction costs, and drawdowns. Additionally, we provide a live demo of DeepAries at https://deep-aries.github.io/, along with the source code and dataset at https://github.com/dmis-lab/DeepAries, illustrating DeepAries' capability to produce interpretable rebalancing and allocation decisions aligned with shifting market regimes. Overall, DeepAries introduces an innovative paradigm for adaptive and practical portfolio management by integrating both timing and allocation into a unified decision-making process.
arXiv.org Artificial Intelligence
Oct-20-2025
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