mlsanityData to 7 Oct 2026

Janus-Q: End-to-End Event-Driven Trading via Hierarchical-Gated Reward Modeling

arXiv 2602.19919 ↗First posted 23 Feb 2026cs.CL cs.LGcited by 1

On the map: LLM alignment / RLHF / preference optimisation → Preference alignment for recommenders and RAG

Abstract (arXiv)

Financial market movements are often driven by discrete financial events conveyed through news, whose impacts are heterogeneous, abrupt, and difficult to capture under purely numerical prediction objectives. These limitations have motivated growing interest in using textual information as the primary source of trading signals in learning-based systems. Two key challenges hinder existing approaches: (1) the absence of large-scale, event-centric datasets that jointly model news semantics and statistically grounded market reactions, and (2) the misalignment between language model reasoning and financially valid trading behavior under dynamic market conditions. To address these challenges, we propose Janus-Q, an end-to-end event-driven trading framework that elevates financial news events from auxiliary signals to primary decision units. Janus-Q unifies event-centric data construction and model optimization under a two-stage paradigm. Stage I focuses on event-centric data construction, building a large-scale financial news event dataset comprising 62,400 articles annotated with 10 fine-grained event types, associated stocks, sentiment labels, and event-driven cumulative abnormal return (CAR). Stage II performs decision-oriented fine-tuning, combining supervised learning with reinforcement learning guided by a Hierarchical Gated Reward Model (HGRM), which explicitly captures trade-offs among multiple trading objectives. Extensive experiments demonstrate that Janus-Q achieves more consistent, interpretable, and profitable trading decisions than market indices and LLM baselines, improving the Sharpe Ratio by up to 102.0% while increasing direction accuracy by over 17.5% compared to the strongest competing strategies.

Key facts. Cited by 1 paper in the map (data through 7 Oct 2026). Placed in Preference alignment for recommenders and RAG, one of 10 directions in LLM alignment / RLHF / preference optimisation. Builds on 20 of its 43 references that are in the map. First posted on arXiv 23 Feb 2026.

Builds on

20 of 43 references.

References · 20

  1. 2025Qwen3 Technical Reportcited by 8,195
  2. 2025Gemini 2.5: Pushing the Frontier with Advanced Reasoning, Multimodality, Long Context, and Next Generation Agentic Capabilitiescited by 3,655
  3. 2024TradingAgents: Multi-Agents LLM Financial Trading Frameworkcited by 182
  4. 2024A Multimodal Foundation Agent for Financial Trading: Tool-Augmented, Diversified, and Generalistcited by 137
  5. 2024ChatTS: Aligning Time Series with LLMs via Synthetic Data for Enhanced Understanding and Reasoningcited by 95
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  8. 2019Doc2EDAG: An End-to-End Document-level Framework for Chinese Financial Event Extractioncited by 54
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  10. 2025What Makes a Good Reasoning Chain? Uncovering Structural Patterns in Long Chain-of-Thought Reasoningcited by 21
  11. 2023SEntFiN 1.0: Entity-Aware Sentiment Analysis for Financial Newscited by 18
  12. 2023Dynamic Datasets and Market Environments for Financial Reinforcement Learningcited by 15
8 more
  1. 2025Beyond the Black Box: Interpretability of LLMs in Financecited by 10
  2. 2025From Deep Learning to LLMs: A survey of AI in Quantitative Investmentcited by 9
  3. 2025Pre-training Time Series Models with Stock Data Customizationcited by 5
  4. 2025FinKario: Event-Enhanced Automated Construction of Financial Knowledge Graphcited by 4
  5. 2025Fusing Narrative Semantics for Financial Volatility Forecastingcited by 3
  6. 2025StockMem: An Event-Reflection Memory Framework for Stock Forecastingcited by 3
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Built on by

Cited by year (2026 to 7 Oct)

Citing papers per year: 2026: 1.

1 paper.

Similar, not cited

Close in wording, no citation either way

  1. 2024FANAL -- Financial Activity News Alerting Language Modeling Framework
  2. 2025News-Aware Direct Reinforcement Trading for Financial Markets
  3. 2026Can Language Models Learn to Forecast Stock Prices
  4. 2026Reasoning through Verifiable Forecast Actions: Consistency-Grounded RL for Financial LLMs
  5. 2025To Trade or Not to Trade: An Agentic Approach to Estimating Market Risk Improves Trading Decisions
  6. 2026CN-Buzz2Portfolio: A Chinese-Market Dataset and Benchmark for LLM-Based Macro and Sector Asset Allocation from Daily Trending Financial News
  7. 2026From Knowing to Doing: A Memory-Controlled Benchmark for LLM Trading Agents on Stock Markets
  8. 2025Trading-R1: Financial Trading with LLM Reasoning via Reinforcement Learning