Automate Strategy Finding with LLM in Quant Investment
Not on the map. Why?
Abstract (arXiv)
We present a novel three-stage framework leveraging Large Language Models (LLMs) within a risk-aware multi-agent system for automate strategy finding in quantitative finance. Our approach addresses the brittleness of traditional deep learning models in financial applications by: employing prompt-engineered LLMs to generate executable alpha factor candidates across diverse financial data, implementing multimodal agent-based evaluation that filters factors based on market status, predictive quality while maintaining category balance, and deploying dynamic weight optimization that adapts to market conditions. Experimental results demonstrate the robust performance of the strategy in Chinese & US market regimes compared to established benchmarks. Our work extends LLMs capabilities to quantitative trading, providing a scalable architecture for financial signal extraction and portfolio construction. The overall framework significantly outperforms all benchmarks with 53.17% cumulative return on SSE50 (Jan 2023 to Jan 2024), demonstrating superior risk-adjusted performance and downside protection on the market.
Key facts. Cited by 21 papers in the map (data through 7 Oct 2026). Builds on 29 of its 69 references that are in the map. First posted on arXiv 10 Sep 2024.
Builds on
29 of 69 references.
References · 29
- 2017Attention Is All You Needcited by 59,932
- 2017Proximal Policy Optimization Algorithmscited by 14,441
- 2020Retrieval-Augmented Generation for Knowledge-Intensive NLP Taskscited by 9,160
- 2016XGBoost: A Scalable Tree Boosting Systemcited by 5,120
- 2023A Survey of Large Language Modelscited by 2,537
- 2022BLOOM: A 176B-Parameter Open-Access Multilingual Language Modelcited by 1,968
- 2019Explainable Artificial Intelligence (XAI): Concepts, Taxonomies, Opportunities and Challenges toward Responsible AIcited by 1,543
- 2023BloombergGPT: A Large Language Model for Financecited by 923
- 2023Multi-Agent Collaboration: Harnessing the Power of Intelligent LLM Agentscited by 329
- 2023FinMem: A Performance-Enhanced LLM Trading Agent with Layered Memory and Character Designcited by 163
- 2024Rethinking the Bounds of LLM Reasoning: Are Multi-Agent Discussions the Key?cited by 153
- 2024A Multimodal Foundation Agent for Financial Trading: Tool-Augmented, Diversified, and Generalistcited by 137
17 more
- 2021Symbolic Regression via Neural-Guided Genetic Programming Population Seedingcited by 97
- 2024Revolutionizing Finance with LLMs: An Overview of Applications and Insightscited by 88
- 2023InvestLM: A Large Language Model for Investment using Financial Domain Instruction Tuningcited by 80
- 2024A Survey of Large Language Models in Finance (FinLLMs)cited by 77
- 2024CuMo: Scaling Multimodal LLM with Co-Upcycled Mixture-of-Expertscited by 56
- 2020Dynamic ReLUcited by 55
- 2021HIST: A Graph-based Framework for Stock Trend Forecasting via Mining Concept-Oriented Shared Informationcited by 43
- 2023Generating Synergistic Formulaic Alpha Collections via Reinforcement Learningcited by 37
- 2024Learning to Generate Explainable Stock Predictions using Self-Reflective Large Language Modelscited by 35
- 2021AlphaEvolve: A Learning Framework to Discover Novel Alphas in Quantitative Investmentcited by 31
- 2021REST: Relational Event-driven Stock Trend Forecastingcited by 30
- 2023Integrating Stock Features and Global Information via Large Language Models for Enhanced Stock Return Predictioncited by 16
- 2020MAPS: Multi-agent Reinforcement Learning-based Portfolio Management Systemcited by 15
- 2020Robust Market Making via Adversarial Reinforcement Learningcited by 13
- 2024Modal-adaptive Knowledge-enhanced Graph-based Financial Prediction from Monetary Policy Conference Calls with LLMcited by 9
- 2023Multimodal Gen-AI for Fundamental Investment Researchcited by 7
- 2023Methods for Acquiring and Incorporating Knowledge into Stock Price Prediction: A Surveycited by 3
Built on by
Citing papers per year: 2024: 1; 2025: 13; 2026: 7.
21 papers.
Sort:
By area:
- 2025R&D-Agent-Quant: A Multi-Agent Framework for Data-Centric Factors and Model Joint Optimizationcited by 39
- 2025Fino1: On the Transferability of Reasoning-Enhanced LLMs and Reinforcement Learning to Financecited by 32
- 2025LLM-Powered Multi-Agent System for Automated Crypto Portfolio Managementcited by 20
- 2025Navigating the Alpha Jungle: An LLM-Powered MCTS Framework for Formulaic Factor Miningcited by 13
- 2025LiveTradeBench: Seeking Real-World Alpha with Large Language Modelscited by 13
- 2025Cognitive Alpha Mining via LLM-Driven Code-Based Evolutioncited by 12
- 2024A Survey of Financial AI: Architectures, Advances and Open Challengescited by 6
- 2025LLM-Based Routing in Mixture of Experts: A Novel Framework for Tradingcited by 6
- 2025Alpha-R1: Alpha Screening with LLM Reasoning via Reinforcement Learningcited by 5
- 2025Integrating Large Language Models in Financial Investments and Market Analysis: A Surveycited by 4
- 2026AlphaMemo: Structured Search-Process Memory for Self-Evolving Alpha Mining Agentscited by 3
- 2025To Trade or Not to Trade: An Agentic Approach to Estimating Market Risk Improves Trading Decisionscited by 2
9 more
- 2026AlphaPROBE: Alpha Mining via Principled Retrieval and On-graph biased evolutioncited by 2
- 2025RKEFino1: A Regulation Knowledge-Enhanced Large Language Modelcited by 1
- 2025InvestAlign: Overcoming Data Scarcity in Aligning Large Language Models with Investor Decision-Making Processes under Herd Behaviorcited by 1
- 2025An Adaptive Multi Agent Bitcoin Trading Systemcited by 1
- 2026Resisting Manipulative Bots in Meme Coin Copy Trading: A Multi-Agent Approach with Chain-of-Thought Reasoningcited by 1
- 2026AlphaCrafter: Harnessing Multi-Agent Workflows for Cross-Sectional Quantitative Tradingcited by 1
- 2026BacktestBench: Benchmarking Large Language Models for Automated Quantitative Strategy Backtestingcited by 1
- 2026EVOQUANT: Self-Evolving Verifier-Guided Strategy Optimization for Robust Quantitative Tradingcited by 0
- 2026Agentic Empirical Asset Pricing: Methodological Foundationscited by 0
- 2026Agentic Empirical Asset Pricing: Methodological Foundations1 Sep 2026
- 2026EVOQUANT: Self-Evolving Verifier-Guided Strategy Optimization for Robust Quantitative Trading14 Jul 2026
- 2026AlphaMemo: Structured Search-Process Memory for Self-Evolving Alpha Mining Agents26 May 2026
- 2026BacktestBench: Benchmarking Large Language Models for Automated Quantitative Strategy Backtesting18 May 2026
- 2026AlphaCrafter: Harnessing Multi-Agent Workflows for Cross-Sectional Quantitative Trading7 May 2026
- 2026AlphaPROBE: Alpha Mining via Principled Retrieval and On-graph biased evolution12 Feb 2026
- 2026Resisting Manipulative Bots in Meme Coin Copy Trading: A Multi-Agent Approach with Chain-of-Thought Reasoning13 Jan 2026
- 2025Alpha-R1: Alpha Screening with LLM Reasoning via Reinforcement Learning29 Dec 2025
- 2025Cognitive Alpha Mining via LLM-Driven Code-Based Evolution24 Nov 2025
- 2025LiveTradeBench: Seeking Real-World Alpha with Large Language Models5 Nov 2025
- 2025An Adaptive Multi Agent Bitcoin Trading System9 Oct 2025
- 2025To Trade or Not to Trade: An Agentic Approach to Estimating Market Risk Improves Trading Decisions11 Jul 2025
9 more
- 2025InvestAlign: Overcoming Data Scarcity in Aligning Large Language Models with Investor Decision-Making Processes under Herd Behavior9 Jul 2025
- 2025Integrating Large Language Models in Financial Investments and Market Analysis: A Survey29 Jun 2025
- 2025RKEFino1: A Regulation Knowledge-Enhanced Large Language Model6 Jun 2025
- 2025R&D-Agent-Quant: A Multi-Agent Framework for Data-Centric Factors and Model Joint Optimization21 May 2025
- 2025Navigating the Alpha Jungle: An LLM-Powered MCTS Framework for Formulaic Factor Mining16 May 2025
- 2025Fino1: On the Transferability of Reasoning-Enhanced LLMs and Reinforcement Learning to Finance12 Feb 2025
- 2025LLM-Based Routing in Mixture of Experts: A Novel Framework for Trading16 Jan 2025
- 2025LLM-Powered Multi-Agent System for Automated Crypto Portfolio Management1 Jan 2025
- 2024A Survey of Financial AI: Architectures, Advances and Open Challenges1 Nov 2024
- 2025R&D-Agent-Quant: A Multi-Agent Framework for Data-Centric Factors and Model Joint Optimizationcited by 39
- 2025LLM-Powered Multi-Agent System for Automated Crypto Portfolio Managementcited by 20
- 2025To Trade or Not to Trade: An Agentic Approach to Estimating Market Risk Improves Trading Decisionscited by 2
- 2025An Adaptive Multi Agent Bitcoin Trading Systemcited by 1
- 2026AlphaCrafter: Harnessing Multi-Agent Workflows for Cross-Sectional Quantitative Tradingcited by 1
- 2026Agentic Empirical Asset Pricing: Methodological Foundationscited by 0
- 2026Agentic Empirical Asset Pricing: Methodological Foundations1 Sep 2026
- 2026AlphaCrafter: Harnessing Multi-Agent Workflows for Cross-Sectional Quantitative Trading7 May 2026
- 2025An Adaptive Multi Agent Bitcoin Trading System9 Oct 2025
- 2025To Trade or Not to Trade: An Agentic Approach to Estimating Market Risk Improves Trading Decisions11 Jul 2025
- 2025R&D-Agent-Quant: A Multi-Agent Framework for Data-Centric Factors and Model Joint Optimization21 May 2025
- 2025LLM-Powered Multi-Agent System for Automated Crypto Portfolio Management1 Jan 2025
- 2025Fino1: On the Transferability of Reasoning-Enhanced LLMs and Reinforcement Learning to Financecited by 32
- 2025LiveTradeBench: Seeking Real-World Alpha with Large Language Modelscited by 13
- 2025Alpha-R1: Alpha Screening with LLM Reasoning via Reinforcement Learningcited by 5
- 2026AlphaMemo: Structured Search-Process Memory for Self-Evolving Alpha Mining Agentscited by 3
- 2026Resisting Manipulative Bots in Meme Coin Copy Trading: A Multi-Agent Approach with Chain-of-Thought Reasoningcited by 1
- 2026AlphaMemo: Structured Search-Process Memory for Self-Evolving Alpha Mining Agents26 May 2026
- 2026Resisting Manipulative Bots in Meme Coin Copy Trading: A Multi-Agent Approach with Chain-of-Thought Reasoning13 Jan 2026
- 2025Alpha-R1: Alpha Screening with LLM Reasoning via Reinforcement Learning29 Dec 2025
- 2025LiveTradeBench: Seeking Real-World Alpha with Large Language Models5 Nov 2025
- 2025Fino1: On the Transferability of Reasoning-Enhanced LLMs and Reinforcement Learning to Finance12 Feb 2025
- 2025Navigating the Alpha Jungle: An LLM-Powered MCTS Framework for Formulaic Factor Miningcited by 13
- 2025Cognitive Alpha Mining via LLM-Driven Code-Based Evolutioncited by 12
- 2024A Survey of Financial AI: Architectures, Advances and Open Challengescited by 6
- 2025Integrating Large Language Models in Financial Investments and Market Analysis: A Surveycited by 4
- 2026AlphaPROBE: Alpha Mining via Principled Retrieval and On-graph biased evolutioncited by 2
- 2025RKEFino1: A Regulation Knowledge-Enhanced Large Language Modelcited by 1
- 2026BacktestBench: Benchmarking Large Language Models for Automated Quantitative Strategy Backtestingcited by 1
- 2026BacktestBench: Benchmarking Large Language Models for Automated Quantitative Strategy Backtesting18 May 2026
- 2026AlphaPROBE: Alpha Mining via Principled Retrieval and On-graph biased evolution12 Feb 2026
- 2025Cognitive Alpha Mining via LLM-Driven Code-Based Evolution24 Nov 2025
- 2025Integrating Large Language Models in Financial Investments and Market Analysis: A Survey29 Jun 2025
- 2025RKEFino1: A Regulation Knowledge-Enhanced Large Language Model6 Jun 2025
- 2025Navigating the Alpha Jungle: An LLM-Powered MCTS Framework for Formulaic Factor Mining16 May 2025
- 2024A Survey of Financial AI: Architectures, Advances and Open Challenges1 Nov 2024