A policy is an algorithm or a set of rules that describe how an agent makes its decisions. An example policy can be the strategy an investor uses to trade stocks, where the investor buys a stock when its price goes down and sells the stock when the price goes up.
More formally, a policy is a function, usually denoted as 
, that maps a state, 
, to an action, 
:
This means that an agent decides its action given its current state. This function ...
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