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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

Formulaic alpha factor mining is a critical yet challenging task in quantitative investment, characterized by a vast search space and the need for domain-informed, interpretable signals. However, finding novel signals becomes increasingly…

Trading and Market Microstructure · Quantitative Finance 2026-02-17 Yanlong Wang , Jian Xu , Hongkang Zhang , Shao-Lun Huang , Danny Dongning Sun , Xiao-Ping Zhang

Alpha factor mining aims to discover investment signals from the historical financial market data, which can be used to predict asset returns and gain excess profits. Powerful deep learning methods for alpha factor mining lack…

Computational Finance · Quantitative Finance 2025-06-18 Junjie Zhao , Chengxi Zhang , Min Qin , Peng Yang

In the field of quantitative trading, it is common practice to transform raw historical stock data into indicative signals for the market trend. Such signals are called alpha factors. Alphas in formula forms are more interpretable and thus…

Statistical Finance · Quantitative Finance 2023-06-23 Shuo Yu , Hongyan Xue , Xiang Ao , Feiyang Pan , Jia He , Dandan Tu , Qing He

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

Signal decay and regime shifts pose recurring challenges for data-driven investment strategies in non-stationary markets. Conventional time-series and machine learning approaches, which rely primarily on historical correlations, often…

Trading and Market Microstructure · Quantitative Finance 2025-12-30 Zuoyou Jiang , Li Zhao , Rui Sun , Ruohan Sun , Zhongjian Li , Jing Li , Daxin Jiang , Zuo Bai , Cheng Hua

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

Mining of formulaic alpha factors refers to the process of discovering and developing specific factors or indicators (referred to as alpha factors) for quantitative trading in stock market. To efficiently discover alpha factors in vast…

Computational Engineering, Finance, and Science · Computer Science 2024-07-09 Hong-Gi Shin , Sukhyun Jeong , Eui-Yeon Kim , Sungho Hong , Young-Jin Cho , Yong-Hoon Choi

The rapid advancement of Large Language Models (LLMs) has led to a surge of financial benchmarks, evolving from static knowledge evaluation toward interactive trading simulations. However, existing frameworks for evaluating real-time…

Trading and Market Microstructure · Quantitative Finance 2026-05-28 Wentao Zhang , Mingxuan Zhao , Jincheng Gao , Jieshun You , Huaiyu Jia , Yilei Zhao , Bo An , Shuo Sun

Feature Transformation (FT) is a core data-centric AI task that improves feature space quality to advance downstream predictive performance. However, discovering effective transformations remains challenging due to the large space of…

Computation and Language · Computer Science 2026-03-12 Xinyuan Wang , Kunpeng Liu , Arun Vignesh Malarkkan , Yanjie Fu

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

The multi-factor model is a widely used model in quantitative investment. The success of a multi-factor model is largely determined by the effectiveness of the alpha factors used in the model. This paper proposes a new evolutionary…

Computational Finance · Quantitative Finance 2020-04-07 Tianping Zhang , Yuanqi Li , Yifei Jin , Jian Li

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

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

Reinforcement learning from human feedback (RLHF) has emerged as an effective approach to aligning large language models (LLMs) to human preferences. RLHF contains three steps, i.e., human preference collecting, reward learning, and policy…

Computation and Language · Computer Science 2024-03-29 Hao Lang , Fei Huang , Yongbin Li

Recent advancements in large language models (LLMs) have significantly enhanced the ability of LLM-based systems to perform complex tasks through natural language processing and tool interaction. However, optimizing these LLM-based systems…

Computation and Language · Computer Science 2025-06-19 Peiyan Zhang , Haibo Jin , Leyang Hu , Xinnuo Li , Liying Kang , Man Luo , Yangqiu Song , Haohan Wang

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

Discovering effective predictive signals, or "alphas," from financial data with high dimensionality and extremely low signal-to-noise ratio remains a difficult open problem. Despite progress in deep learning, genetic programming, and, more…

Computation and Language · Computer Science 2026-04-21 Fengyuan Liu , Yi Huang , Sichun Luo , Yuqi Wang , Yazheng Yang , Xinye Li , Zefa Hu , Junlan Feng , Qi Liu

This paper introduces a reinforcement learning framework that employs Proximal Policy Optimization (PPO) to dynamically optimize the weights of multiple large language model (LLM)-generated formulaic alphas for stock trading strategies.…

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

The growing disparity between the exponential scaling of computational resources and the finite growth of high-quality text data now constrains conventional scaling approaches for large language models (LLMs). To address this challenge, we…

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