The classical hedging problem entails replicating the payoff of a contingent claim under a certain stochastic model. While we can find a complete hedging strategy in a complete market like Black-Scholes, a market is in general incomplete, including jump diffusion, and stochastic volatility models. While there are several hedging approaches in an incomplete market, it is often very difficult to get a closed form solution or even calculate numerically. Even in a complete market like Black-Scholes, there are drawbacks to this strategy in both execution and the theory it is based on. A traditional asset pricing and hedging method assumes frictionless markets, perfect liquidity, and normally distributed returns among many other conditions.

The data mixture used in the pre-training of a language model is a cornerstone of its final performance. However, a static mixing strategy is suboptimal, as the model's learning preferences for various data domains shift dynamically throughout training. Crucially, observing these evolving preferences in a computationally efficient manner remains a significant challenge. To address this, we propose TiKMiX, a method that dynamically adjusts the data mixture according to the model's evolving preferences. TiKMiX introduces Group Influence, an efficient metric for evaluating the impact of data domains on the model. This metric enables the formulation of the data mixing problem as a search for an optimal, influence-maximizing distribution. We solve this via two approaches: TiKMiX-D for direct optimization, and TiKMiX-M, which uses a regression model to predict a superior mixture. We trained models with different numbers of parameters, on up to 1 trillion tokens. TiKMiX-D exceeds the performance of state-of-the-art methods like REGMIX while using just 20% of the computational resources. TiKMiX-M leads to an average performance gain of 2% across 9 downstream benchmarks. Our experiments reveal that a model's data preferences evolve with training progress and scale, and we demonstrate that dynamically adjusting the data mixture based on Group Influence, a direct measure of these preferences, significantly improves performance by mitigating the underdigestion of data seen with static ratios.

We propose a natural quantization of a standard neural network, where the neurons correspond to qubits and the activation functions are implemented via quantum gates and measurements. The simplest quantized neural network corresponds to applying single-qubit rotations, with the rotation angles being dependent on the weights and measurement outcomes of the previous layer. This realization has the advantage of being smoothly tunable from the purely classical limit with no quantum uncertainty (thereby reproducing the classical neural network exactly) to a quantum case, where superpositions introduce an intrinsic uncertainty in the network. We benchmark this architecture on a subset of the standard MNIST dataset and find a regime of "quantum advantage," where the validation error rate in the quantum realization is smaller than that in the classical model. We also consider another approach where quantumness is introduced via weak measurements of ancilla qubits entangled with the neuron qubits. This quantum neural network also allows for smooth tuning of the degree of quantumness by controlling an entanglement angle, $g$, with $g=\frac\pi 2$ replicating the classical regime. We find that validation error is also minimized within the quantum regime in this approach. We also observe a quantum transition, with sharp loss of the quantum network's ability to learn at a critical point $g_c$. The proposed quantum neural networks are readily realizable in present-day quantum computers on commercial datasets.

Likelihood-based deep generative models (DGMs) have gained significant attention for their ability to approximate the distributions of high-dimensional data. However, these models lack a performance guarantee in assigning higher likelihood values to in-distribution (ID) inputs, data the models are trained on, compared to out-of-distribution (OOD) inputs. This counter-intuitive behaviour is particularly pronounced when ID inputs are more complex than OOD data points. One potential approach to address this challenge involves leveraging the gradient of a data point with respect to the parameters of the DGMs. A recent OOD detection framework proposed estimating the joint density of layer-wise gradient norms for a given data point as a model-agnostic method, demonstrating superior performance compared to the Typicality Test across likelihood-based DGMs and image dataset pairs. In particular, most existing methods presuppose access to fully converged models, the training of which is both time-intensive and computationally demanding. In this work, we demonstrate that using immature models,stopped at early stages of training, can mostly achieve equivalent or even superior results on this downstream task compared to mature models capable of generating high-quality samples that closely resemble ID data. This novel finding enhances our understanding of how DGMs learn the distribution of ID data and highlights the potential of leveraging partially trained models for downstream tasks. Furthermore, we offer a possible explanation for this unexpected behaviour through the concept of support overlap.

We identify stable regions in the residual stream of Transformers, where the model's output remains insensitive to small activation changes, but exhibits high sensitivity at region boundaries. These regions emerge during training and become more defined as training progresses or model size increases. The regions appear to be much larger than previously studied polytopes. Our analysis suggests that these stable regions align with semantic distinctions, where similar prompts cluster within regions, and activations from the same region lead to similar next token predictions. This work provides a promising research direction for understanding the complexity of neural networks, shedding light on training dynamics, and advancing interpretability.

In current deep learning tasks, Adam style optimizers such as Adam, Adagrad, RMSProp, Adafactor, and Lion have been widely used as alternatives to SGD style optimizers. These optimizers typically update model parameters using the sign of gradients, resulting in more stable convergence curves. The learning rate and the batch size are the most critical hyperparameters for optimizers, which require careful tuning to enable effective convergence. Previous research has shown that the optimal learning rate increases linearly or follows similar rules with batch size for SGD style optimizers. However, this conclusion is not applicable to Adam style optimizers. In this paper, we elucidate the connection between optimal learning rates and batch sizes for Adam style optimizers through both theoretical analysis and extensive experiments. First, we raise the scaling law between batch sizes and optimal learning rates in the sign of gradient case, in which we prove that the optimal learning rate first rises and then falls as the batch size increases. Moreover, the peak value of the surge will gradually move toward the larger batch size as training progresses. Second, we conducted experiments on various CV and NLP tasks and verified the correctness of the scaling law.

This paper presents ProFL, a novel progressive FL framework to effectively break the memory wall. Specifically, ProFL divides the model into different blocks based on its original architecture. Instead of updating the full model in each training round, ProFL first trains the front blocks and safely freezes them after convergence. Training of the next block is then triggered. This process iterates until the training of the whole model is completed. In this way, the memory footprint is effectively reduced for feasible deployment on heterogeneous devices. In order to preserve the feature representation of each block, we decouple the whole training process into two stages: progressive model shrinking and progressive model growing. During the progressive model shrinking stage, we meticulously design corresponding output modules to assist each block in learning the expected feature representation and obtain the initialization parameters. Then, the obtained output modules are utilized in the corresponding progressive model growing stage. Additionally, to control the training pace for each block, a novel metric from the scalar perspective is proposed to assess the learning status of each block and determines when to trigger the training of the next one. Finally, we theoretically prove the convergence of ProFL and conduct extensive experiments on representative models and datasets to evaluate the effectiveness of ProFL. The results demonstrate that ProFL effectively reduces the peak memory footprint by up to 57.4% and improves model accuracy by up to 82.4%.

Neuroscience experiments often require training animals to perform tasks designed to elicit various sensory, cognitive, and motor behaviors. Training typically involves a series of gradual adjustments of stimulus conditions and rewards in order to bring about learning. However, training protocols are usually hand-designed, relying on a combination of intuition, guesswork, and trial-and-error, and often require weeks or months to achieve a desired level of task performance. Here we combine ideas from reinforcement learning and adaptive optimal experimental design to formulate methods for adaptive optimal training of animal behavior. Our work addresses two intriguing problems at once: first, it seeks to infer the learning rules underlying an animal's behavioral changes during training; second, it seeks to exploit these rules to select stimuli that will maximize the rate of learning toward a desired objective.