# Recursive Multi-Agent Trading System: Iterative Optimized Portfolio Strategy Under Geopolitical Uncertainty

arXiv: https://arxiv.org/abs/2605.25311 · HTML: https://mlsanity.com/paper/2605.25311/

## Key facts

- Cited by 1 papers in the map (data through 14 Oct 2026).
- First posted on arXiv 25 May 2026.

## Built on by (most cited first, 1 of 1)

- [Early Diagnosis of Wasted Computation in Multi-Agent LLM Systems via Failure-Aware Observability](https://mlsanity.com/paper/2606.01365/) (2026)

## Abstract (arXiv)

Recursive Multi-Agent Trading System (RMATS) integrates four specialized agents -- Sentiment, Report, Analysis, and Risk -- coordinated through a recursive Manager Agent with iterative feedback loops. Experimental evaluation over a 561-trading-day period (January 2023 to March 2025) across a 24-asset multi-class universe demonstrates that RMATS achieves a maximum drawdown of 9.62%, lower than MVO (15.49%) and FinBERT Sentiment (15.28%), and exhibits the lowest event-period drawdown in 3 of 5 geopolitical stress scenarios tested. While RMATS underperforms return-maximizing baselines in a sustained bull market environment, ablation studies confirm the individual contribution of each agent component to downside protection. These results position RMATS as a risk-control-oriented architecture suitable for institutions prioritizing capital preservation under geopolitical uncertainty.