Abstract: This study presents TAQLA, a new Tabular Adaptive Q-Learning Agent for portfolio management in stochastic financial markets. TAQLA rests on a multi-model reinforcement learning (RL) architecture that integrates parameter-adaptive Q-Learning mechanisms into softmax-based exploration to reconcile short-term profit maximization with long-term capital preservation. The method is contrasted with vanilla Q-Learning, SARSA, and a random trading policy using simulated equity market data. Empirical analysis shows that TAQLA performs better on profitability, risk-adjusted performance, and drawdown minimization, with a last portfolio value of $1687.45 (+68.74% of initial capital), a Sharpe ratio of 1.41, and a maximum drawdown of just 12.8%. Q-Learning and SARSA, on the other hand, yield Sharpe ratios below 1.0 and drawdowns exceeding 18%. Parameter sensitivity analysis across β (softmax temperature), α (learning rate), and γ (discount factor) reveals that aggressive exploration (β ≈ 1.0–1.5) and reasonable discounting (γ ≈ 0.4–0.6) generate the most aggressive and robust outcomes. Such outcomes place TAQLA as a robust RL-based adaptive portfolio control method under uncertainty, with improved capital appreciation and robustness to adverse market conditions.

Sharmin Sultana, Md Borhan Uddin, Masuma Akter Semi, Shahanaj Akther, Urmi Chakraborty and Khandakar Rabbi Ahmed. “A Multi-Model Adaptive Q-Learning Framework for Robust Portfolio Management in Stochastic Markets”. International Journal of Advanced Computer Science and Applications (IJACSA) 17.1 (2026). http://dx.doi.org/10.14569/IJACSA.2026.0170101

@article{Sultana2026,
title = {A Multi-Model Adaptive Q-Learning Framework for Robust Portfolio Management in Stochastic Markets},
journal = {International Journal of Advanced Computer Science and Applications},
doi = {10.14569/IJACSA.2026.0170101},
url = {http://dx.doi.org/10.14569/IJACSA.2026.0170101},
year = {2026},
publisher = {The Science and Information Organization},
volume = {17},
number = {1},
author = {Sharmin Sultana and Md Borhan Uddin and Masuma Akter Semi and Shahanaj Akther and Urmi Chakraborty and Khandakar Rabbi Ahmed}
}