Quantum-Enhanced Forecasting for Deep Reinforcement Learning in Algorithmic Trading

The convergence of quantum-inspired neural networks and deep reinforcement learning offers a promising avenue for financial trading. We implemented a trading agent for USD/TWD by integrating Quantum Long Short-Term Memory (QLSTM) for short-term trend prediction with Quantum Asynchronous Advantage Actor-Critic (QA3C), a quantum-enhanced variant of the classical A3C. Trained on data from 2000-01-01 to 2025-04-30 (80% training, 20% testing), the long-only agent achieves 11.87% return over around 5 years with 0.92% max drawdown, outperforming several currency ETFs. Our implementation is simulated on classical hardware; results should be interpreted as quantum-inspired rather than true quantum advantage. We detail state design (QLSTM features and indicators), reward function for trend-following/risk control, and multi-core training. Results show hybrid models yield competitive FX trading performance. Implications include QLSTM’s effectiveness for small-profit trades with tight risk and future enhancements. Key hyperparameters: QLSTM sequence length=4, QA3C workers=8. Limitations: classical quantum simulation and simplified strategy. 1