Multi-Agents LLM Financial Trading Framework
Posted by fittingopposite 9 hours ago
Comments
Comment by zackmorris 5 minutes ago
I've heard that high frequency trading eats market opportunities within milliseconds of spotting them now though, basically making the market even more random. The catch being that human nature isn't random, it's stochastic, so there will always be more money to be made on trades (or else trading firms wouldn't exist).
I'm thinking about getting back into trading because AI represents the end of buying software and we'll all be out of work soon, even if we're in denial about it. But everything I invest my time and energy into turns to crap. In a very real sense, as soon as I start trading, then karmically that could trigger recession, market reforms which ban what I'm trying, or even the end of money. I'm kind of joking and kind of not.
I've worked on a lot of really hard stuff over my brief but stupid career, and am basically used up mentally and physically, at least for now. Quant stuff is easy with AI. Should I try it?
Comment by not_a_bot_4sho 11 minutes ago
Comment by _pdp_ 6 hours ago
Anyway, I have been running my own trading experiment and so far it has lost a bit of money. That being said I have not tried to optimise anything - just let it do whatever it wants. The losses are small and it might be able to recover later this year. Who knows.
The agent writes a blog about its progress here https://trades.chatbotkit.space/
I am thinking to output all the chat logs to HF as well for research.
You can run your own trading agents that communicate over a message buss in your own terms by downloading the CBK platform and running it locally with your own models. I have also shared my trading blueprint if you want to give it a go. https://chatbotkit.com/hub/blueprints/trader
Comment by NichoPaolucci 1 hour ago
I had done a small experiment with 100$, but would be hesitant on more than that. I suppose if it's money you're willing to lose.
Comment by dominotw 4 minutes ago
Comment by ppalata 2 hours ago
Comment by csomar 2 hours ago
Comment by whazor 6 hours ago
Maybe agentic trading still performs worse than ETFs. But alternatively, if it were meaningfully better then it would be okay to opensource, similarly how ETFs are publishing their portfolios.
Comment by harrouet 2 hours ago
Put simply, if you open source your magic recipe, the behavioral change will affect the prices and you recipe will not work anymore.
Comment by _pdp_ 6 hours ago
When I started working no the trading agent I mentioned above I wanted to see if it can be just a better investor over the long run. The intention was not to do high-frequency trading. As you can see most of the days it is not taking any actions. The losses where down to mistakenly setting the stop losses too close to the top. If it wasn't so careful it might have made some money tbf.
My gut feeling is that AI agents will be able to manage a long-term portfolio much better than a human. Though it is just a gut feeling.
Comment by dakolli 5 hours ago
Comment by whazor 5 hours ago
Comment by XenophileJKO 5 hours ago
I have been running an intermittent experiment with a multi agent "investment firm" for over a year now across model releases.
They certainly can beat indexes, BUT.. the model families have some biases that you have to design around. The stop loss that bit the parent is certainly one. The models like to create rules. Often rules, one of those is making all kinds of exit conditions.
Another big one from my experience is the bias to inaction in a scenario with risk. This means a model without structure around it will bias to keeping too much cash.
Comment by ppalata 5 hours ago
Buying stock based on coin flips can beat indexes short term too, that does not mean it is a better strategy or that it works over the long term.
Comment by kakacik 1 hour ago
The idea that somebody here came up with idea that all professional algo traders didn't explore to the last penny a year if not more ahead of others is funny... but its not my money adding liquidity to the markets.
Comment by irthomasthomas 4 hours ago
Comment by fg137 2 hours ago
Comment by dakolli 4 hours ago
Comment by rienbdj 6 hours ago
Comment by hacker_9 7 hours ago
Secondly, browsing reddit for sentiment and doing technical analysis is not even a feature in the trading world. At the most basic level, these are lagging indicators. Something on options IV and premiums would have been closer to the mark.
Hedge funds are akin to the maintenance crew for markets, we keep them efficient and liquid. The process is quite scientific, you come up with a theory and validate with real data. Or you go from data to theory.
Comment by empath75 8 minutes ago
Comment by XenophileJKO 5 hours ago
Now it may be possible with models like Astra that you no longer need to do this, but in earlier models it was beneficial.
So I might want a macro economic read which leads to a market thesis. Then I would hunt for exposure, then evaluate the candidates across different aspects. Breaking the process up at least made sure no steps were missed and the different aspects considered.
Comment by looofooo0 7 hours ago
Comment by lordnacho 2 hours ago
There's always risk somewhere in a financial system.
Comment by hacker_9 6 hours ago
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Comment by audinalexandre 7 hours ago
Comment by dsl 6 hours ago
- Yahoo News is introduced twice (sentiment and news analysis) which double weights it
- Sentiment analysis prompt primes the model to be bullish on Nvidia.
- In the self learning loop there is a complex parsing bug that results in hallucinated memories when agents return truncated responses
- You can completely control sentiment analysis of a subreddit by simply maintaining a majority of the 5 most recently posted messages, regardless of any quality metric
- The reflection prompt states the agent must cite alpha, which in a market wide downturn causes it to think correctly placed calls were losses
Comment by throw93947309 4 hours ago
They have zero guards against market manioulations, and will get wiped without bull market!
Comment by embedding-shape 5 hours ago
Eeh, yeah? At that point I'd stop reading the code and just leave the project behind. How exactly is the prompt doing this right now?
Comment by autorunfun 4 hours ago
Comment by politelemon 7 hours ago
I can see the intention behind crawling social media and news feeds to determine some 'evidence', but am not sure if that's the best approach or even if an LLM is the best way to get an assessment, or whether having so many input sources is a good idea.
Comment by testaccount121 6 hours ago
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Comment by chasd00 2 hours ago
https://stonks.jettdigital.app
edit: i just talked to my little sister ("Ginger" on the leaderboad) who is doing a good job beating the sp500. She said she just asks her ai what she should invest in and then executes those trades.
Comment by shaolinspirit 7 hours ago
Comment by BenoitP 7 hours ago
These are necessary and perfectly sufficient for an investment firm thesis I believe.
Comment by podocarp 7 hours ago
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Comment by fg137 2 hours ago
Although I don't think it even matters. They could easily cherry pick a period that is favorable for them. Wasting time and money on short term trading, rather than long term investment, using LLM or not, is never a good strategy for most people.
Comment by jatins 1 hour ago
https://chatgpt.com/share/6aa00d5e-6920-83ee-8e3e-9cbf23f7bd...
Comment by ctdonnet 5 hours ago
Whatever the stated purpose is, where can I read the test results to show it accurately fulfills that purpose.
Anyone can make a markets simulation that models interactions between market participants. Making a simulation that is accurate enough to be useful for anything is hard.
Comment by fedeb95 6 hours ago
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Comment by elzbardico 6 hours ago
There are times when I wonder if couldn't just draw then in a BPMN designer that allowed me to write custom code for nodes. Is BPMN still a thing?
Comment by fg137 2 hours ago
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