mlsanityData to 7 Oct 2026

Automate Strategy Finding with LLM in Quant Investment

arXiv 2409.06289 ↗First posted 10 Sep 2024q-fin.PM cs.LG q-fin.PRcited by 21

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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

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17 more
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Cited by year (2026 to 7 Oct)

Citing papers per year: 2024: 1; 2025: 13; 2026: 7.

21 papers.

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  1. 2025R&D-Agent-Quant: A Multi-Agent Framework for Data-Centric Factors and Model Joint Optimizationcited by 39
  2. 2025Fino1: On the Transferability of Reasoning-Enhanced LLMs and Reinforcement Learning to Financecited by 32
  3. 2025LLM-Powered Multi-Agent System for Automated Crypto Portfolio Managementcited by 20
  4. 2025Navigating the Alpha Jungle: An LLM-Powered MCTS Framework for Formulaic Factor Miningcited by 13
  5. 2025LiveTradeBench: Seeking Real-World Alpha with Large Language Modelscited by 13
  6. 2025Cognitive Alpha Mining via LLM-Driven Code-Based Evolutioncited by 12
  7. 2024A Survey of Financial AI: Architectures, Advances and Open Challengescited by 6
  8. 2025LLM-Based Routing in Mixture of Experts: A Novel Framework for Tradingcited by 6
  9. 2025Alpha-R1: Alpha Screening with LLM Reasoning via Reinforcement Learningcited by 5
  10. 2025Integrating Large Language Models in Financial Investments and Market Analysis: A Surveycited by 4
  11. 2026AlphaMemo: Structured Search-Process Memory for Self-Evolving Alpha Mining Agentscited by 3
  12. 2025To Trade or Not to Trade: An Agentic Approach to Estimating Market Risk Improves Trading Decisionscited by 2
9 more
  1. 2026AlphaPROBE: Alpha Mining via Principled Retrieval and On-graph biased evolutioncited by 2
  2. 2025RKEFino1: A Regulation Knowledge-Enhanced Large Language Modelcited by 1
  3. 2025InvestAlign: Overcoming Data Scarcity in Aligning Large Language Models with Investor Decision-Making Processes under Herd Behaviorcited by 1
  4. 2025An Adaptive Multi Agent Bitcoin Trading Systemcited by 1
  5. 2026Resisting Manipulative Bots in Meme Coin Copy Trading: A Multi-Agent Approach with Chain-of-Thought Reasoningcited by 1
  6. 2026AlphaCrafter: Harnessing Multi-Agent Workflows for Cross-Sectional Quantitative Tradingcited by 1
  7. 2026BacktestBench: Benchmarking Large Language Models for Automated Quantitative Strategy Backtestingcited by 1
  8. 2026EVOQUANT: Self-Evolving Verifier-Guided Strategy Optimization for Robust Quantitative Tradingcited by 0
  9. 2026Agentic Empirical Asset Pricing: Methodological Foundationscited by 0