---
title: Delta-Guided Soft Actor-Critic for Derivative Hedgingunder Model Misspecification and Transaction Costs
url: https://www.ml-quant.com/papers/ssrn/7585078/
site: ML-Quant (https://www.ml-quant.com)
updated: 2026-10-09
license: Summaries CC BY 4.0; links go to the original sources
index: https://www.ml-quant.com/llms.txt
identifier: SSRN 7585078
source_url: https://papers.ssrn.com/sol3/papers.cfm?abstract_id=7585078
featured: 2026-10-09
citations: unknown
topic: Derivatives & Volatility
---


# Delta-Guided Soft Actor-Critic for Derivative Hedgingunder Model Misspecification and Transaction Costs

A reinforcement learning method embedding Black-Scholes delta guidance cuts hedging error by 19-38% across simulated and real options data with robust statistical significance.

- Source: https://papers.ssrn.com/sol3/papers.cfm?abstract_id=7585078
- Identifier: SSRN 7585078
- Released: 2026-10-08
- First featured: Quant Letter No. 134 (2026-10-09): https://www.ml-quant.com/issues/2026-10-09/
- Citations (Semantic Scholar): not tracked
- Published in: not yet
- Topic: Derivatives & Volatility
- Authors: Sparsh Patel

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