# MadEvolve: Evolutionary Optimization of Trading Systems with Large Language Models

arXiv: https://arxiv.org/abs/2605.23007 · HTML: https://mlsanity.com/paper/2605.23007/

## Key facts

- No citing papers in the map yet (data through 14 Oct 2026).
- Builds on 16 of its 30 references that are in the map.
- First posted on arXiv 21 May 2026.

## Builds on (most cited first, 16 of 16)

- [GPT-4 Technical Report](https://mlsanity.com/paper/2303.08774/) (2023)
- [A Survey of Large Language Models](https://mlsanity.com/paper/2303.18223/) (2023)
- [A Survey on Large Language Model based Autonomous Agents](https://mlsanity.com/paper/2308.11432/) (2023)
- [AlphaEvolve: A coding agent for scientific and algorithmic discovery](https://mlsanity.com/paper/2506.13131/) (2025)
- [Illuminating search spaces by mapping elites](https://mlsanity.com/paper/1504.04909/) (2015)
- [The Illusion of Thinking: Understanding the Strengths and Limitations of Reasoning Models via the Lens of Problem Complexity](https://mlsanity.com/paper/2506.06941/) (2025)
- [FinGPT: Open-Source Financial Large Language Models](https://mlsanity.com/paper/2306.06031/) (2023)
- [FrontierMath: A Benchmark for Evaluating Advanced Mathematical Reasoning in AI](https://mlsanity.com/paper/2411.04872/) (2024)
- [TradingAgents: Multi-Agents LLM Financial Trading Framework](https://mlsanity.com/paper/2412.20138/) (2024)
- [ShinkaEvolve: Towards Open-Ended And Sample-Efficient Program Evolution](https://mlsanity.com/paper/2509.19349/) (2025)
- [Measuring AI Ability to Complete Long Software Tasks](https://mlsanity.com/paper/2503.14499/) (2025)
- [Can ChatGPT Forecast Stock Price Movements? Return Predictability and Large Language Models](https://mlsanity.com/paper/2304.07619/) (2023)
- [Instruct-FinGPT: Financial Sentiment Analysis by Instruction Tuning of General-Purpose Large Language Models](https://mlsanity.com/paper/2306.12659/) (2023)
- [AIA Forecaster: Technical Report](https://mlsanity.com/paper/2511.07678/) (2025)
- [QuantEvolve: Automating Quantitative Strategy Discovery through Multi-Agent Evolutionary Framework](https://mlsanity.com/paper/2510.18569/) (2025)
- [MadEvolve: Evolutionary Optimization of Cosmological Algorithms with Large Language Models](https://mlsanity.com/paper/2602.15951/) (2026)

## Abstract (arXiv)

We explore the application of LLM-driven algorithm optimization to several common tasks in quantitative finance. MadEvolve, a general-purpose algorithm optimization framework inspired by DeepMind's Alpha-Evolve, was recently developed to optimize algorithms in computational cosmology. Here we demonstrate the utility of MadEvolve to optimize algorithmic trading strategies and alpha generation at the example of Bitcoin trading. On our simulation and backtesting setup, we achieve significant improvements on all tasks we considered, such as evolving feature sets for signal generation, optimizing separate components of the trading strategy, and jointly evolving the feature pipeline together with the execution strategy. Additionally, we compare our method to other agentic search approaches, specifically Claude Code, and carefully evaluate p-hacking probabilities on our simulation setup. Our findings strongly support the utility of AI-driven agentic and evolutionary algorithms for algorithmic trading and quantitative finance.