Hugging Face Daily PapersSehee Kim, Yumin Choi, Minki Kang1 min readpaperadvanced
EvolveTrade: Experience-Driven Policy Refinement for Self-Evolving LLM Trading Agents
Summary
EvolveTrade is a framework for self-evolving LLM trading agents that refines their tool-use policies (system prompts) based on past performance. It demonstrates improved Sharpe Ratio and Cumulative Return compared to agents with static policies across various market regimes.
- LLM trading agents often use static, hand-written tool-use policies, limiting adaptability to market changes.
- EvolveTrade treats the LLM agent's system prompt as a text-parameterized policy, refined by a separate Policy Agent.
- Policy refinement uses accumulated decision traces and realized portfolio feedback, keeping the backbone LLM fixed.
- This approach improves Sharpe Ratio and Cumulative Return over fixed-policy LLM baselines in most evaluated settings.
Engineers building adaptive LLM agents, especially in dynamic environments like financial markets, should care about this approach to policy refinement.
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