News-Aware Direct Reinforcement Trading for Financial Markets
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Abstract (arXiv)
The financial market is known to be highly sensitive to news. Therefore, effectively incorporating news data into quantitative trading remains an important challenge. Existing approaches typically rely on manually designed rules and/or handcrafted features. In this work, we directly use the news sentiment scores derived from large language models, together with raw price and volume data, as observable inputs for reinforcement learning. These inputs are processed by sequence models such as recurrent neural networks or Transformers to make end-to-end trading decisions. We conduct experiments using the cryptocurrency market as an example and evaluate two representative reinforcement learning algorithms, namely Double Deep Q-Network (DDQN) and Group Relative Policy Optimization (GRPO). The results demonstrate that our news-aware approach, which does not depend on handcrafted features or manually designed rules, can achieve performance superior to market benchmarks. We further highlight the critical role of time-series information in this process.
Key facts. No citing papers in the map yet (data through 13 Oct 2026). Builds on 22 of its 52 references that are in the map. First posted on arXiv 22 Oct 2025.
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References · 22
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10 more
- 2020An Application of Deep Reinforcement Learning to Algorithmic Tradingcited by 30
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- 2026CLaC@FinMMEval 2026 Task 3: Sentiment-Augmented Deep Reinforcement Learning for Active Trading -- An Alpha-Reward Approach
- 2025Exploring Sentiment Manipulation by LLM-Enabled Intelligent Trading Agents
- 2026FinSMART: Financial Sentiment Analysis for Algorithmic Trading through Market-Aligned Reinforcement Learning
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- 2026CN-Buzz2Portfolio: A Chinese-Market Dataset and Benchmark for LLM-Based Macro and Sector Asset Allocation from Daily Trending Financial News