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Internalizing Investment Mandates: A Neurosymbolic RL Approach to Portfolio Allocation

A paper submitted to arXiv on 12 Nov 2026 presents a PLPG-inspired continuous-action neurosymbolic reinforcement learning method that cuts violations of a six-rule regime-conditional investment mandate to 4.8%, down from 96-98% for unconstrained RL and 33.4% for a reward-penalty baseline. The authors estimate the probability that the policy's own executed action satisfies the mandate using reparameterized Monte Carlo sampling and add that term to the training objective, so compliance is learned by the agent rather than enforced post-hoc at inference time. Audited directly on deterministic mean actions with no correction, the result indicates a continuous-action neurosymbolic policy can substantially internalize a symbolic mandate.

read2 min views3 publishedNov 13, 2026
Internalizing Investment Mandates: A Neurosymbolic RL Approach to Portfolio Allocation
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  [Submitted on 12 Nov 2026]


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Abstract:Institutional portfolios operate under investment policy statements that specify asset allocation constraints, often conditioned on market regime information. Deep reinforcement learning has been shown to optimize financial performance but typically does not enforce rule compliance, making it unsuitable for real-world deployment. Existing neurosymbolic methods such as Probabilistic Logic Policy Gradient (PLPG) offer constraint-satisfying reinforcement learning (RL) via differentiable symbolic supervision but assume a finite, discrete action space. We present a PLPG-inspired continuous allocation method that estimates the probability that the policy's own executed action satisfies the investment mandate, using reparameterized Monte Carlo sampling, and adds it to the training objective. No post-hoc enforcement mechanism intercepts actions at inference time and compliance is learned by the agent. Audited directly on deterministic mean actions with no correction, the policy reduces violations of a six-rule regime-conditional mandate from 96-98% for unconstrained RL and 33.4% for a reward-penalty baseline to 4.8%, showing that a continuous-action neurosymbolic policy can substantially internalize a symbolic mandate.

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