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Alpha factor mining is pivotal in quantitative investment for identifying predictive signals from complex financial data. While traditional formulaic alpha mining relies on human expertise, contemporary automated methods, such as those…

Artificial Intelligence · Computer Science 2025-11-13 Yu Shi , Yitong Duan , Jian Li

Alpha factor mining is a fundamental task in quantitative trading, aimed at discovering interpretable signals that can predict asset returns beyond systematic market risk. While traditional methods rely on manual formula design or heuristic…

Computational Engineering, Finance, and Science · Computer Science 2025-10-22 Lang Cao

Financial markets are noisy and non-stationary, making alpha mining highly sensitive to backtest noise and regime shifts. While recent agentic frameworks improve automation, they often lack controllable multi-round search and reliable reuse…

Statistical Finance · Quantitative Finance 2026-05-19 Jun Han , Shuo Zhang , Wei Li , Yifan Dong , Tu Hu , Yumo Zhu , Xiaomin Yu , Xin Guo , Zhaowei Liu , Kunyi Wang , Jingping Liu , Tianyi Jiang , Ruichuan An , Sen Hu , Zhi Yang , Ronghao Che , Huacan Wang

Large Language Models (LLMs) have unveiled remarkable capabilities in understanding and generating both natural language and code, but LLM reasoning is prone to hallucination and struggle with complex, novel scenarios, often getting stuck…

Neural and Evolutionary Computing · Computer Science 2025-05-12 Antonio Jimeno Yepes , Pieter Barnard

Alpha mining, which discovers signals that predict asset returns, has long been attractive for automatic quantitative investment. This problem is typically formulated as a tree-based symbolic regression with handcrafted market data features…

Computational Engineering, Finance, and Science · Computer Science 2025-08-25 Junji Ren , Junjie Zhao , Shengcai Liu , Peng Yang

Traditionally, traders and quantitative analysts address alpha decay by manually crafting formulaic alphas, mathematical expressions that identify patterns or signals in financial data, through domain expertise and trial-and-error. This…

Computational Engineering, Finance, and Science · Computer Science 2026-03-05 Qizhao Chen , Hiroaki Kawashima

One of the most important tasks in quantitative investment research is mining new alphas (effective trading signals or factors). Traditional alpha mining methods, either hand-crafted factor synthesizing or algorithmic factor mining (e.g.,…

Computational Finance · Quantitative Finance 2025-09-23 Saizhuo Wang , Hang Yuan , Leon Zhou , Lionel M. Ni , Heung-Yeung Shum , Jian Guo

Alphas are pivotal in providing signals for quantitative trading. The industry highly values the discovery of formulaic alphas for their interpretability and ease of analysis, compared with the expressive yet overfitting-prone black-box…

Computational Finance · Quantitative Finance 2024-06-27 Feng Xu , Yan Yin , Xinyu Zhang , Tianyuan Liu , Shengyi Jiang , Zongzhang Zhang

The pursuit of alpha returns that exceed market benchmarks has undergone a profound transformation, evolving from intuition-driven investing to autonomous, AI powered systems. This paper introduces a comprehensive five stage taxonomy that…

Machine Learning · Computer Science 2025-05-22 Mohammad Rubyet Islam

Feature discovery from complex unstructured data is fundamentally a reasoning problem: it requires identifying abstractions that are predictive of a target outcome while avoiding leakage, proxies, and post-outcome signals. With the…

Modern quantitative trading increasingly relies on systematic models to extract predictive signals from large-scale financial data, where alpha factor discovery plays a central role in transforming market observations into tradable signals.…

Computational Engineering, Finance, and Science · Computer Science 2026-05-18 Lingzhe Zhang , Tong Jia , Yunpeng Zhai , Zixuan Xie , Chiming Duan , Minghua He , Philip S. Yu , Ying Li

Sparse portfolio optimization is a fundamental yet challenging problem in quantitative finance, since traditional approaches heavily relying on historical return statistics and static objectives can hardly adapt to dynamic market regimes.…

Portfolio Management · Quantitative Finance 2025-07-24 Haochen Luo , Yuan Zhang , Chen Liu

Natural language processing (NLP) has been widely used in quantitative finance, but traditional methods often struggle to capture rich narratives in corporate disclosures, leaving potentially informative signals under-explored. Large…

Computational Engineering, Finance, and Science · Computer Science 2026-03-17 Chanyeol Choi , Yoon Kim , Yu Yu , Young Cha , V. Zach Golkhou , Igor Halperin , Georgios Papaioannou , Minkyu Kim , Zhangyang Wang , Jihoon Kwon , Minjae Kim , Alejandro Lopez-Lira , Yongjae Lee

The transition from static Large Language Models (LLMs) to self-improving agents is hindered by the lack of structured reasoning in traditional evolutionary approaches. Existing methods often struggle with premature convergence and…

Artificial Intelligence · Computer Science 2026-01-01 Chunhui Wan , Xunan Dai , Zhuo Wang , Minglei Li , Yanpeng Wang , Yinan Mao , Yu Lan , Zhiwen Xiao

The task of financial analysis primarily encompasses two key areas: stock trend prediction and the corresponding financial question answering. Currently, machine learning and deep learning algorithms (ML&DL) have been widely applied for…

Computation and Language · Computer Science 2024-03-20 Xiang Li , Zhenyu Li , Chen Shi , Yong Xu , Qing Du , Mingkui Tan , Jun Huang , Wei Lin

Alpha mining, a critical component in quantitative investment, focuses on discovering predictive signals for future asset returns in increasingly complex financial markets. However, the pervasive issue of alpha decay, where factors lose…

Computational Engineering, Finance, and Science · Computer Science 2025-06-10 Ziyi Tang , Zechuan Chen , Jiarui Yang , Jiayao Mai , Yongsen Zheng , Keze Wang , Jinrui Chen , Liang Lin

Alphas are stock prediction models capturing trading signals in a stock market. A set of effective alphas can generate weakly correlated high returns to diversify the risk. Existing alphas can be categorized into two classes: Formulaic…

Artificial Intelligence · Computer Science 2021-04-02 Can Cui , Wei Wang , Meihui Zhang , Gang Chen , Zhaojing Luo , Beng Chin Ooi

Algorithmic discovery has traditionally relied on human ingenuity and extensive experimentation. Here we investigate whether a prominent scientific computing algorithm, the Kalman Filter, can be discovered through an automated, data-driven,…

Neural and Evolutionary Computing · Computer Science 2025-08-26 Vasileios Saketos , Sebastian Kaltenbach , Sergey Litvinov , Petros Koumoutsakos

Automated alpha discovery is difficult because the search space of formulaic factors is combinatorial, the signal-to-noise ratio in daily equity data is low, and unconstrained program generation is operationally unsafe. We present Hubble,…

Artificial Intelligence · Computer Science 2026-04-15 Runze Shi , Shengyu Yan , Yuecheng Cai , Chengxi Lv

Discovering efficient algorithms for solving complex problems has been an outstanding challenge in mathematics and computer science, requiring substantial human expertise over the years. Recent advancements in evolutionary search with large…

Artificial Intelligence · Computer Science 2026-05-26 Anja Surina , Amin Mansouri , Lars Quaedvlieg , Amal Seddas , Maryna Viazovska , Emmanuel Abbe , Caglar Gulcehre
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