AlphaG-OPD: Reliability-Gated Sibling Counterfactuals for On-Policy Distillation in Symbolic Alpha Factor Discovery

On-policy distillation (OPD) trains a student on its own trajectories with dense per-token supervision from a stronger teacher, and often outperforms off-policy distillation and standard reinforcement learning. However, we find that its effectiveness implicitly relies on two assumptions that frequently break in practice: trajectory-level alignment between the student and the teacher, and uniform token-level reliability of the teacher's preferences. We therefore propose Sign-Gated On-Policy Distillation (SG-OPD), which uses a binary verifier as a trust signal for the teacher at two complementary granularities: phased teacher sampling mixes in verifier-endorsed teacher rollouts at cold-start, and a sign-consistency gate extrapolates the distillation update on tokens where the teacher agrees with the verifier-correct direction and interpolates it where it disagrees. Experiments on competition-level mathematical reasoning benchmarks show that SG-OPD consistently outperforms standard OPD, with average gains of 1.98 and 7.50 at the per-sample and per-question levels, respectively.

On-policy distillation (OPD) trains an LLM on states induced by the current or recent student policy: the student generates complete or partial rollouts, a teacher or self-teacher scores the resulting tokens under their generated contexts, and dense log-probability, logit, or distributional signals are converted into post-training updates. This survey studies OPD as a feedback-to-update problem rather than a single loss family. We develop a formula-driven taxonomy from two routes -- direct distributional losses and policy-gradient-style log-ratio updates -- and use it to organize core methods, verifier- or outcome-guided hybrids, industrial reports, framework implementations, failure modes, and stabilization recipes under explicit evidence boundaries. The taxonomy shows that OPD effectiveness depends not only on KL direction or teacher access, but also on state compatibility, support construction, temporal credit, vocabulary-level probability routing, gates and weights, and regularization. We further separate two mechanisms often conflated in sampled-token OPD stability discussions. Temporal credit asks how teacher-student log-ratio returns should weight sampled actions across a rollout; vocabulary routing asks where probability mass should move when negative feedback suppresses a sampled token. This distinction yields bias boundaries for immediate, return-to-go, discounted, and baseline-corrected estimators, motivates GAE-OPD as a value-based hypothesis for log-ratio returns, and motivates Counterfactual Routed OPD (CR-OPD) for routing probability mass toward teacher-supported, student-reachable alternatives. We close by mapping actionability diagnostics, failure mechanisms, case studies, open problems, and a reporting checklist onto the same feedback-to-update variables.

On-policy distillation (OPD) improves reasoning models by applying dense teacher supervision on student-sampled trajectories. However, scaling OPD to long-horizon mathematical reasoning exposes a reliability and efficiency problem: standard OPD assigns every sampled candidate the same long rollout budget, even though some trajectories may quickly become weakly aligned with the teacher and provide less useful supervision. Prior analyses suggest that successful OPD depends on local teacher-student compatibility, which can be measured by top-k overlap on student-visited prefixes. When this overlap is low, continuing to generate or train on long suffixes may waste computation and introduce noisy learning signal. To address this, we introduce Prefix-Guided On-Policy Distillation (PG-OPD), a simple rollout-allocation framework that uses fixed-length prefixes to estimate trajectory value before expensive long-horizon generation. PG-OPD first decodes every sampled candidate to the same prefix length, computes teacher-student top-k overlap within an early probe window of that prefix, and selectively continues high-overlap candidates to a fixed long length. Low-overlap candidates stop at the fixed prefix, avoiding unnecessary suffix generation. Across diverse teacher-student combinations on AMC, AIME, and HMMT benchmarks, PG-OPD improves average accuracy by up to 4.80 points while reducing training time by up to 2.46x. These results suggest that prefix-level compatibility provides a practical signal for directing OPD computation toward trajectories that remain learnable from the teacher.