EVOQUANT: Self-Evolving Verifier-Guided Strategy Optimization for Robust Quantitative Trading
On the map: Synthetic data and self-improvement for LLMs → Self-evolving LLM agents
Abstract (arXiv)
Quantitative strategy optimization remains largely manual, requiring domain experts to identify weak signals, tune risk-control rules, and repeatedly validate iterative revisions. Large language models can accelerate this process, but directly relying on them to rewrite trading strategies often introduces hallucinated edits, strategy drift, and backtest overfitting. We propose EVOQUANT, a self-Evolving Verifier-guided framework for strategy Optimization in Quantitative trading. Our method utilizes LLMs to deeply diagnose performance bottlenecks, generates semantically controlled candidate edits, selects the best strategy through a multi-stage verification pipeline, and distills optimization experience into reusable knowledge for continual self-improvement. We evaluate our method using seven representative strategies: four from the A-share market and three from the Crypto market. Experimental results show that our method significantly improves the Sharpe ratio across all tested strategies: the average test Sharpe increases from -0.298 to 0.538, and the best-performing strategy achieves a 199% relative improvement. Ablation studies and stress tests under stricter conditions further validate the effectiveness and robustness of the framework. Overall, this work transforms quantitative strategy optimization from costly manual trial and error into an automated and verifiable iterative paradigm, offering a new path for applying large language models to financial strategy research.
Key facts. No citing papers in the map yet (data through 7 Oct 2026). Placed in Self-evolving LLM agents, one of 13 directions in Synthetic data and self-improvement for LLMs. Builds on 22 of its 42 references that are in the map. First posted on arXiv 14 Jul 2026.
Builds on
22 of 42 references.
References · 22
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- 2024AlphaForge: A Framework to Mine and Dynamically Combine Formulaic Alpha Factorscited by 25
10 more
- 2024Automate Strategy Finding with LLM in Quant Investmentcited by 21
- 2025Time Travel is Cheating: Going Live with DeepFund for Real-Time Fund Investment Benchmarkingcited by 21
- 2024QuantFactor REINFORCE: Mining Steady Formulaic Alpha Factors with Variance-bounded REINFORCEcited by 13
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- 2025Agent-Based Genetic Algorithm for Crypto Trading Strategy Optimizationcited by 1
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- 2024QuantAgent: Seeking Holy Grail in Trading by Self-Improving Large Language Model
- 2026MadEvolve: Evolutionary Optimization of Trading Systems with Large Language Models
- 2025ATLAS: Adaptive Trading with LLM AgentS Through Dynamic Prompt Optimization and Multi-Agent Coordination
- 2026QuantCode-Bench: A Benchmark for Evaluating the Ability of Large Language Models to Generate Executable Algorithmic Trading Strategies
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