Algorithmic Trading

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Overview

Algorithmic trading studies how to turn market data and other information into rules for selecting assets, managing portfolios, and placing orders. Common approaches include statistical and machine-learning factors, deep reinforcement learning for portfolio choice or execution, market-making models, and newer language-model agents for research and strategy generation. Researchers test these systems with historical walk-forward backtests, limit-order-book simulations, and increasingly prospective or live evaluations, measuring returns alongside risk and trading costs. A central challenge is showing that apparent gains survive data leakage controls, changing market regimes, execution frictions, and the feedback effects of deploying similar strategies.

Latest papers

CardsList

149 papers27 papers in the last four weeks, up 59% on the four weeks before. 0.2% of all new papers.

  1. Paper Agents, Paper Gains: An Empirical Analysis of DeFi Investment Agents

    May 27, 2026Jay Yu, Amy Zhao, Danning SuiFinancial ServicesAI Agent Evaluation

    Pantera Capital · Stanford University · IC3 +1

  2. From Knowing to Doing: A Memory-Controlled Benchmark for LLM Trading Agents on Stock Markets

    May 27, 2026Taojie Zhu, Wentao Zhao, Rui Sun +7Benchmark ContaminationLLM Agent Evaluation

    1Tsinghua University, 2Stepfun · 2Stepfun · 4Shanghai Jiao Tong University +3

  3. AlphaMemo: Structured Search-Process Memory for Self-Evolving Alpha Mining Agents

    May 26, 2026Hang Yu, Zifan Zheng, Chun Gan +4LLM Agent MemoryFinance

    University of Sydney · University of Edinburgh

  4. DeepSeekMath Meets Order Book: Group-Aware Policy Optimization for High-Frequency Directional Trading

    May 25, 2026Sayak Charabarty, Souradip PalGroup Relative Policy OptimizationProximal Policy Optimization

    Department of Computer Science Northwestern University Evanston, IL 60208, USA · School of Electrical and Computer Engineering Purdue University West Lafayette, IN 47906, USA

  5. Market Regime Council for Dynamic Credit Assignment in Multi-Agent LLM Decision Systems

    May 23, 2026Yunhua Pei, Zerui Ge, Jin Zheng +1Multi-Agent LLM SystemsMulti-Agent Systems

    University of Bristol, UK · Independent Researcher

  6. MadEvolve: Evolutionary Optimization of Trading Systems with Large Language Models

    May 21, 2026Yurii Kvasiuk, Tianyi Li, Owen Colegrove +1Quantitative FinanceEvolutionary Optimization

    Department of Physics, University of Wisconsin–Madison · Event Horizon Labs

  7. Zero-shot adaptation to order book dynamics

    May 20, 2026Arip AsadulaevSequential Decision MakingStochastic Optimal Control

  8. Memory-Induced Supra-Competitive Outcomes Between Deep Reinforcement Learning Agents in Optimal Trade Execution

    May 19, 2026Christos Spyridon Koulouris, Carlo CampajolaAlgorithmic CollusionMemory-Augmented Agents

    Institute of Finance and Technology, University College London, Gower Street WC1E 6BT London, United Kingdom · UZH Blockchain Center, Andreasstrasse 15, 8050 Zürich, Switzerland

  9. Machine Learning-Based Bitcoin Trading Under Transaction Costs: Evidence From Walk-Forward Forecasting

    May 19, 2026Andrei Bysik, Robert ŚlepaczukQuantitative FinanceTime Series Forecasting

    Quantitative Finance Research Group, Faculty of Economic Sciences, University of Warsaw, ul. Długa 44/50, 00-241 Warsaw, Poland · Quantitative Finance Research Group, Department of Quantitative Finance and Machine Learning, Faculty of Economic Sciences, University of Warsaw, ul. Długa 44/50, 00-241 Warsaw, Poland

  10. Online Market Making and the Value of Observing the Order Book

    May 19, 2026Davide Maran, Marcello RestelliAdversarial BanditsAlgorithmic Trading

    Politecnico di Milano, Piazza Leonardo da Vinci, 32-36 - Citt`a Studi, Milano (MI)

  11. Agentic Trading: When LLM Agents Meet Financial Markets

    May 19, 2026Yihan Xia, Panpan You, Taotao Wang +4LLM Agent EvaluationFinance

    College of Electronic and Information Engineering, Shenzhen University, Shenzhen, China

  12. Deep Reinforcement Learning Framework for Diversified Portfolio Management Across Global Equity Markets

    May 17, 2026Kamil Kashif, Robert ŚlepaczukReinforcement LearningPortfolio Optimization

    Quantitative Finance Research Group Faculty of Economic Sciences University of Warsaw ul. Dluga 44-50 00-241 Warsaw Poland · Quantitative Finance Research Group Department of Quantitative Finance and Machine Learning Faculty of Economic Sciences University of Warsaw ul. Dluga 44-50 00-241 Warsaw Poland

  13. The Alpha Illusion: Reported Alpha from LLM Trading Agents Should Not Be Treated as Deployment Evidence

    May 16, 2026Yuxuan Ye, Jun Han, Ao Hu +7LLM Agent EvaluationAI Agent Benchmarks

    Fudan University · Shanghai University of Finance and Economics · Southwest University of Finance and Economics +3

  14. From Feedback Loops to Policy Updates: Reinforcement Fine-Tuning for LLM-Based Alpha Factor Discovery

    May 14, 2026Lingzhe Zhang, Tong Jia, Yunpeng Zhai +5RL for Language ModelsAlpha Factor Discovery

    Peking University, Beijing, China · Alibaba Group, China · Nanjing University, Nanjing, China +1

  15. Algometrics: Forecasting Under Algorithmic Feedback

    May 13, 2026Marc SchmittTime Series ForecastingPerformative Prediction

    University of Oxford

  16. Plan Before You Trade: Inference-Time Optimization for RL Trading Agents

    May 12, 2026Eun Go, Rohan Deb, Arindam BanerjeeReinforcement LearningInference-Time Optimization

    Siebel School of Computing and Data Science, University of Illinois Urbana-Champaign

  17. SHARP: A Self-Evolving Human-Auditable Rubric Policy for Financial Trading Agents

    May 7, 2026Xiwen Chen, Wenhui Zhu, Songzhu Zheng +3Reinforcement LearningCredit Assignment in RL

    Morgan Stanley · Arizona State University · Columbia University +1

  18. Strat-LLM: Stratified Strategy Alignment for LLM-based Stock Trading with Real-time Multi-Source Signals

    May 7, 2026Wenliang Huang, Zengyi YuLLM EvaluationLLM Alignment

    School of Economics Zhejiang University of Technology Hangzhou, China · Faculty of Education East China Normal University Shanghai, China

  19. AlphaCrafter: A Full-Stack Multi-Agent Framework for Cross-Sectional Quantitative Trading

    May 7, 2026Yishuo Yuan, Jiayi Sheng, Sirui Zeng +2Multi-Agent OrchestrationQuantitative Finance

    Nanjing University

  20. MOIRA: Policy Memory and Belief Revision for Language-Model Agents in Non-Stationary Pair Trading

    May 3, 2026Polydoros Giannouris, Yuechen Jiang, Lingfei Qian +5Reinforcement LearningHierarchical RL

    The University of Manchester Manchester, UK · The Fin AI USA · Harvard University Cambridge, MA, USA +1

  21. AgenticAITA: A Proof-Of-Concept About Deliberative Multi-Agent Reasoning for Autonomous Trading Systems

    May 1, 2026Ivan LetteriMulti-Agent OrchestrationAI Agent Safety

    Department of Information Engineering, Computer Science, and Mathematics, Center of Excellence for Research DEWS, University of L’Aquila, Via Vetoio, Coppito, 67100 L’Aquila, Italy

  22. Optimal Stop-Loss and Take-Profit Parameterization for Autonomous Trading Agent Swarm

    Apr 29, 2026Nathan Li, Aikins Laryea, Yigit IhlamurQuantitative FinanceAlgorithmic Trading

    University of Oxford · Vela Research

  23. MultiHedge: Adaptive Coordination via Retrieval-Augmented Control

    Apr 27, 2026Feliks Bańka, Jarosław A. ChudziakRetrieval-Augmented GenerationLLM Decision-Making

    The Faculty of Electronics and Information Technology, Warsaw University of Technology, Warsaw, Poland

  24. When Quotes Crumble: Detecting Transient Mechanical Liquidity Erosion in Limit Order Books

    Apr 23, 2026Haohan Xu, Jason Bohne, Pawel Polak +5Quantitative FinanceAlgorithmic Trading

    Stony Brook University · Bloomberg

  25. Early Detection of Latent Microstructure Regimes in Limit Order Books

    Apr 22, 2026Prakul Sunil Hiremath, Vruksha Arun HiremathQuantitative FinanceLatent Dynamics Modeling

    Department of Computer Science and Engineering Visvesvaraya Technological University, Belagavi · Department of Business Administration K.L.E. Society’s College of Business Administration

  26. Dissecting AI Trading: Behavioral Finance and Market Bubbles

    Apr 20, 2026Shumiao Ouyang, Pengfei SuiQuantitative FinanceAlgorithmic Trading

    Saïd Business School, University of Oxford · School of Management and Economics, The Chinese University of Hong Kong, Shenzhen

  27. Signal or Noise in Multi-Agent LLM-based Stock Recommendations?

    Apr 19, 2026George Fatouros, Kostas MetaxasMulti-Agent LLM SystemsMulti-Agent Collaboration

    Alpha Tensor Technologies

  28. Learning to Trade Like an Expert: Cognitive Fine-Tuning for Stable Financial Reasoning in Language Models

    Apr 18, 2026Yuchen Pan, Soung Chang LiewLLM EvaluationFinancial Reasoning in Language Models

    Department of Information Engineering, The Chinese University of Hong Kong

  29. QuantCode-Bench: A Benchmark for Evaluating the Ability of Large Language Models to Generate Executable Algorithmic Trading Strategies

    Apr 16, 2026Alexey Khoroshilov, Alexey Chernysh, Orkhan Ekhtibarov +2Agentic Code GenerationCode Generation Evaluation

    Lime

  30. When Missing Becomes Structure: Intent-Preserving Policy Completion from Financial KOL Discourse

    Apr 15, 2026Yuncong Liu, Yuan Wan, Zhou Jiang +1Algorithmic TradingPolicy Learning

    Asian Institute of Digital Finance, National University of Singapore · School of Computing, National University of Singapore