# FinPos: A Position-Aware Trading Agent System for Real Financial Markets

arXiv: https://arxiv.org/abs/2510.27251 · HTML: https://mlsanity.com/paper/2510.27251/

## Key facts

- Cited by 3 papers in the map (data through 14 Oct 2026).
- Placed in Financial trading and forecasting agents, one of 16 directions in LLM agents and tool use.
- Builds on 11 of its 41 references that are in the map.
- First posted on arXiv 31 Oct 2025.

## Placed in

- LLM agents and tool use / [Financial trading and forecasting agents](https://mlsanity.com/agents/financial-trading-and-forecasting-agents/)

## Builds on (most cited first, 11 of 11)

- [Qwen3 Technical Report](https://mlsanity.com/paper/2505.09388/) (2025)
- [Personal LLM Agents: Insights and Survey about the Capability, Efficiency and Security](https://mlsanity.com/paper/2401.05459/) (2024)
- [TradingAgents: Multi-Agents LLM Financial Trading Framework](https://mlsanity.com/paper/2412.20138/) (2024)
- [FinMem: A Performance-Enhanced LLM Trading Agent with Layered Memory and Character Design](https://mlsanity.com/paper/2311.13743/) (2023)
- [A Multimodal Foundation Agent for Financial Trading: Tool-Augmented, Diversified, and Generalist](https://mlsanity.com/paper/2402.18485/) (2024)
- [A Survey of Frontiers in LLM Reasoning: Inference Scaling, Learning to Reason, and Agentic Systems](https://mlsanity.com/paper/2504.09037/) (2025)
- [A Comprehensive Survey on Process-Oriented Automatic Text Summarization with Exploration of LLM-Based Methods](https://mlsanity.com/paper/2403.02901/) (2024)
- [Chain of Ideas: Revolutionizing Research Via Novel Idea Development with LLM Agents](https://mlsanity.com/paper/2410.13185/) (2024)
- [FinRL: A Deep Reinforcement Learning Library for Automated Stock Trading in Quantitative Finance](https://mlsanity.com/paper/2011.09607/) (2020)
- [Determinants of LLM-assisted Decision-Making](https://mlsanity.com/paper/2402.17385/) (2024)
- [Enhancing Decision-Making for LLM Agents via Step-Level Q-Value Models](https://mlsanity.com/paper/2409.09345/) (2024)

## Built on by (most cited first, 3 of 3)

- [Look-Ahead-Bench: a Standardized Benchmark of Look-ahead Bias in Point-in-Time LLMs for Finance](https://mlsanity.com/paper/2601.13770/) (2026)
- [Agentic Trading: When LLM Agents Meet Financial Markets](https://mlsanity.com/paper/2605.19337/) (2026)
- [Design and Empirical Study of a Large Language Model-Based Multi-Agent Investment System for Chinese Public REITs](https://mlsanity.com/paper/2602.00082/) (2026)

## Abstract (arXiv)

The exceptional potential of large language models (LLMs) in handling text information has garnered significant attention in the field of financial trading. However, most existing trading agents operate under intraday, independent unit-based trading tasks, where decisions are made as isolated directional actions, and thus lack awareness of continuous position management. Therefore, we propose a position-aware trading task designed to simulate a more realistic market. To address this task, we propose FinPos, a position-aware trading agent system designed to explicitly model and manage continuous positions. FinPos enhances position awareness through three key mechanisms: (1) professional-level interpretation of heterogeneous market information; (2) a dual-agent decision structure that separates directional reasoning from risk-aware position adjustment; and (3) multi-timescale reward signals, allowing the agent to internalize position awareness through experiential feedback rather than static instructions alone. Extensive experiments demonstrate that FinPos surpasses state-of-the-art trading agents in the position-aware trading task, which closely mirrors real market conditions. More importantly, our findings reveal that LLM-centered agent systems exhibit a vast, largely unexplored potential in long-term market decision-making.