mlsanityData to 7 Oct 2026

Simulating Financial Market via Large Language Model based Agents

arXiv 2406.19966 ↗First posted 28 Jun 2024cs.CLcited by 25

On the map: LLM agents and tool use → Financial trading and forecasting agents

Abstract (arXiv)

Most economic theories typically assume that financial market participants are fully rational individuals and use mathematical models to simulate human behavior in financial markets. However, human behavior is often not entirely rational and is challenging to predict accurately with mathematical models. In this paper, we propose Agent-based Simulated Financial Market (ASFM), which first constructs a simulated stock market with a real order matching system. Then, we propose a large language model based agent as the stock trader, which contains the profile, observation, and tool-learning based action module. The trading agent can comprehensively understand current market dynamics and financial policy information, and make decisions that align with their trading strategy. In the experiments, we first verify that the reactions of our ASFM are consistent with the real stock market in two controllable scenarios. In addition, we also conduct experiments in two popular economics research directions, and we find that conclusions drawn in our model align with the preliminary findings in economics research. Based on these observations, we believe our proposed ASFM provides a new paradigm for economic research.

Key facts. Cited by 25 papers in the map (data through 7 Oct 2026). Placed in Financial trading and forecasting agents, one of 16 directions in LLM agents and tool use. Builds on 25 of its 51 references that are in the map. First posted on arXiv 28 Jun 2024.

Builds on

25 of 51 references.

References · 25

  1. 2023Generative Agents: Interactive Simulacra of Human Behaviorcited by 3,500
  2. 2023A Survey on Large Language Model based Autonomous Agentscited by 2,203
  3. 2023ToolLLM: Facilitating Large Language Models to Master 16000+ Real-world APIscited by 1,880
  4. 2023MM-REACT: Prompting ChatGPT for Multimodal Reasoning and Actioncited by 511
  5. 2023Cognitive Architectures for Language Agentscited by 422
  6. 2023AppAgent: Multimodal Agents as Smartphone Userscited by 407
  7. 2024TravelPlanner: A Benchmark for Real-World Planning with Language Agentscited by 385
  8. 2023MedAgents: Large Language Models as Collaborators for Zero-shot Medical Reasoningcited by 311
  9. 2023Tool Learning with Foundation Modelscited by 302
  10. 2023ReConcile: Round-Table Conference Improves Reasoning via Consensus among Diverse LLMscited by 297
  11. 2023ToolQA: A Dataset for LLM Question Answering with External Toolscited by 273
  12. 2023Building Cooperative Embodied Agents Modularly with Large Language Modelscited by 231
13 more
  1. 2023PIXIU: A Large Language Model, Instruction Data and Evaluation Benchmark for Financecited by 217
  2. 2023Improving Language Model Negotiation with Self-Play and In-Context Learning from AI Feedbackcited by 202
  3. 2023EconAgent: Large Language Model-Empowered Agents for Simulating Macroeconomic Activitiescited by 154
  4. 2023Recommender AI Agent: Integrating Large Language Models for Interactive Recommendationscited by 130
  5. 2023Can ChatGPT Forecast Stock Price Movements? Return Predictability and Large Language Modelscited by 125
  6. 2022WHEN FLUE MEETS FLANG: Benchmarks and Large Pre-trained Language Model for Financial Domaincited by 117
  7. 2023Tool Documentation Enables Zero-Shot Tool-Usage with Large Language Modelscited by 66
  8. 2023Confucius: Iterative Tool Learning from Introspection Feedback by Easy-to-Difficult Curriculumcited by 64
  9. 2022FiNER: Financial Numeric Entity Recognition for XBRL Taggingcited by 47
  10. 2024Prospect Personalized Recommendation on Large Language Model-based Agent Platformcited by 19
  11. 2023StockEmotions: Discover Investor Emotions for Financial Sentiment Analysis and Multivariate Time Seriescited by 9
  12. 2024Ploutos: Towards interpretable stock movement prediction with financial large language modelcited by 9
  13. 2023Agents meet OKR: An Object and Key Results Driven Agent System with Hierarchical Self-Collaboration and Self-Evaluationcited by 6

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Cited by year (2026 to 7 Oct)

Citing papers per year: 2024: 2; 2025: 12; 2026: 11.

25 papers.

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  1. 2024MegaAgent: A Large-Scale Autonomous LLM-based Multi-Agent System Without Predefined SOPscited by 45
  2. 2025A Survey on the Optimization of Large Language Model-based Agentscited by 45
  3. 2025LLM-based Agentic Reasoning Frameworks: A Survey from Methods to Scenarioscited by 25
  4. 2025OptimAI: Optimization from Natural Language Using LLM-Powered AI Agentscited by 22
  5. 2025Standard Benchmarks Fail -- Auditing LLM Agents in Finance Must Prioritize Riskcited by 13
  6. 2025LiveTradeBench: Seeking Real-World Alpha with Large Language Modelscited by 13
  7. 2025GATSim: Urban Mobility Simulation with Generative Agentscited by 10
  8. 2026Toward Personalized LLM-Powered Agents: Foundations, Evaluation, and Future Directionscited by 10
  9. 2026Efficient LLM Serving for Agentic Workflows: A Data Systems Perspectivecited by 10
  10. 2025How Personality Traits Shape LLM Risk-Taking Behaviourcited by 8
  11. 2026From Failure to Mastery: Generating Hard Samples for Tool-use Agentscited by 8
  12. 2024A Learnable Agent Collaboration Network Framework for Personalized Multimodal AI Search Enginecited by 5
13 more
  1. 2025Bridging Language Models and Financial Analysiscited by 4
  2. 2026Digital Twin AI: Opportunities and Challenges from Large Language Models to World Modelscited by 4
  3. 2026Behavioral Consistency Validation for LLM Agents: An Analysis of Trading-Style Switching through Stock-Market Simulationcited by 3
  4. 2025LLMs Meet Finance: Fine-Tuning Foundation Models for the Open FinLLM Leaderboardcited by 2
  5. 2025SimCity: Multi-Agent Urban Development Simulation with Rich Interactionscited by 2
  6. 2026Strategic Exploitation in LLM Agent Markets: A Simulation Framework for E-Commerce Trustcited by 1
  7. 2025Robust Reinforcement Learning in Finance: Modeling Market Impact with Elliptic Uncertainty Setscited by 0
  8. 2025Beyond Superficial Forgetting: Thorough Unlearning through Knowledge Density Estimation and Block Re-insertioncited by 0
  9. 2026SidConArena: An Environment Evaluating Agents in Open-Ended,Positive-Sum Bargaining Gamecited by 0
  10. 2026Eco3S: Complex Socio-Economic System Simulation via Agent-Based Modelscited by 0
  11. 2026CARD: Controlled Agentic Reddit Discussions for Credit Card Simulationcited by 0
  12. 2026M3: A State-Event Generative Foundation Model for Market Microstructure Dynamicscited by 0
  13. 2026SoK: Trading Agents or Market Crashers? Dissecting Robustness and Security Failures in Academic Financial LLM Trading Schemescited by 0

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  1. 2024When AI Meets Finance (StockAgent): Large Language Model-based Stock Trading in Simulated Real-world Environments
  2. 2025Agent Trading Arena: A Study on Numerical Understanding in LLM-Based Agents
  3. 2025StockSim: A Dual-Mode Order-Level Simulator for Evaluating Multi-Agent LLMs in Financial Markets
  4. 2024TraderTalk: An LLM Behavioural ABM applied to Simulating Human Bilateral Trading Interactions
  5. 2025FinPos: A Position-Aware Trading Agent System for Real Financial Markets
  6. 2024QuantAgent: Seeking Holy Grail in Trading by Self-Improving Large Language Model
  7. 2024Large Language Model Agent in Financial Trading: A Survey
  8. 2026Learning to Trade Like an Expert: Cognitive Fine-Tuning for Stable Financial Reasoning in Language Models