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

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

  1. Representation Homogeneity and Systemic Instability in AI-Dominated Financial Markets: A Structural Approach

    Apr 14, 2026Yimeng Qiu, Qiwei HanAlgorithmic TradingEmergent Behavior in Multi-Agent Systems

  2. Optimal Adaptive Market Making: A Theoretical Framework for High-Yield Liquidity Provision in Perpetual Futures Markets

    Apr 5, 2026Minmin Zeng, Yi LiuAlgorithmic TradingDecentralized Finance

    tsaftech.

  3. PolySwarm: A Multi-Agent Large Language Model Framework for Prediction Market Trading and Latency Arbitrage

    Apr 4, 2026Rajat M. Barot, Arjun S. BorkhatariyaAlgorithmic TradingPrediction Markets

    Department of Computer Science, State University of New York, Binghamton, Binghamton, NY, USA. · Department of Software Engineering, Arizona State University, Tempe, AZ, USA.

  4. Reinforcement Learning for Speculative Trading under Exploratory Framework

    Apr 2, 2026Yun Zhao, Alex S. L. Tse, Harry ZhengOptimal StoppingAlgorithmic Trading

    Department of Mathematics, Imperial College, London SW7 2AZ, UK. · Department of Mathematics, University College London, London WC1H 0AY, UK.

  5. Realistic Market Impact Modeling for Reinforcement Learning Trading Environments

    Mar 30, 2026Lucas Riera Abbade, Anna Helena Reali CostaAlgorithmic TradingRL Benchmarks

    Escola Polit´ecnica Universidade de S˜ao Paulo

  6. Toward Reliable Evaluation of LLM-Based Financial Multi-Agent Systems: Taxonomy, Coordination Primacy, and Cost Awareness

    Mar 29, 2026Phat Nguyen, Thang PhamMulti-Agent LLMsLLM Agent Evaluation

    Georgia Institute of Technology, Atlanta GA 30332, USA · Adobe Inc., San Jose CA 95110, USA

  7. TrustTrade: Human-Inspired Selective Consensus Reduces Decision Uncertainty in LLM Trading Agents

    Mar 23, 2026Minghan Li, Rachel Gonsalves, Weiyue Li +2Algorithmic TradingLLM Agent Reliability

    Harvard AI and Robotics Lab, Harvard University . · Harvard Business School, Harvard University . · Daegu Gyeongbuk Institute of Science and Technology . +1

  8. AI-Driven Alpha Decay: Algorithmic Homogenization, Reflexive Signal Erosion, and the Paradox of Intelligent Markets

    Mar 23, 2026Shuchen Meng, Xupeng ChenFinanceAlgorithmic Trading

    Department of Financial Engineering, New York University. · Department of Electrical and Computer Engineering, New York University.

  9. Artificial Intelligence and Systemic Risk: A Unified Model of Performative Prediction, Algorithmic Herding, and Cognitive Dependency in Financial Markets

    Mar 23, 2026Shuchen Meng, Xupeng ChenPerformative PredictionAlgorithmic Trading

    Department of Financial Engineering, New York University. · Department of Electrical and Computer Engineering, New York University.

  10. FinRL-X: An AI-Native Modular Infrastructure for Quantitative Trading

    Mar 22, 2026Hongyang Yang, Boyu Zhang, Yang She +2Algorithmic TradingQuantitative Finance

    AI4Finance Foundation

  11. Can Blindfolded LLMs Still Trade? An Anonymization-First Framework for Portfolio Optimization

    Mar 18, 2026Joohyoung Jeon, Hongchul LeeAlgorithmic TradingLLM Agent Reliability

    Korea University · Mirae Asset Securities

  12. From Natural Language to Executable Option Strategies via Large Language Models

    Mar 17, 2026Haochen Luo, Zhengzhao Lai, Junjie Xu +4Algorithmic TradingSemantic Parsing

    City University of Hong Kong · The Chinese University of Hong Kong (Shenzhen) · University of Science and Technology of China +1

  13. FactorEngine: A Program-level Knowledge-Infused Factor Mining Framework for Quantitative Investment

    Mar 17, 2026Qinhong Lin, Ruitao Feng, Yinglun Feng +7Alpha Factor DiscoveryQuantitative Finance

    Beijing University of Posts and Telecommunications, China · Beijing Value Simplex Technology Co., Ltd., China · Yangtze Delta Research Institute, University of Electronic Science and Technology of China, China +1

  14. Algorithmic Trading Strategy Development and Optimisation

    Mar 16, 2026Owen Nyo Wei Yuan, Victor Tan Jia Xuan, Ong Jun Yao Fabian +1Algorithmic Trading

    SINGAPORE INSTITUTE OF TECHNOLOGY · INFOCOMM TECHNOLOGY

  15. Execution Is the New Attack Surface: Survivability-Aware Agentic Crypto Trading with OpenClaw-Style Local Executors

    Mar 10, 2026Ailiya Borjigin, Igor Stadnyk, Ben Bilski +2AI Agent SafetyRuntime Enforcement for AI Agents

    True Trading

  16. AlphaLogics: A Market Logic-Driven Multi-Agent System for Scalable and Interpretable Alpha Factor Generation

    Mar 10, 2026Zhangyuhua Weng, Shengli Zhang, Taotao Wang +1Alpha Factor DiscoveryQuantitative Finance

    College of Electronic and Information Engineering, Shenzhen University

  17. Quantum-Assisted Optimal Rebalancing with Uncorrelated Asset Selection for Algorithmic Trading Walk-Forward QUBO Scheduling via QAOA

    Mar 4, 2026Abraham Itzhak WeinbergAlgorithmic TradingPortfolio Optimization

    AI-WEINBERG, AI Experts, Tel Aviv, Israel

  18. How do standard time series forecasting benchmarks translate to finance? A broad study of risk adjusted performance

    Mar 2, 2026Adir Saly-Kaufmann, Kieran Wood, Jan-Peter Calliess +1Financial Time SeriesTime Series Forecasting

    Machine Learning Research Group, Department of Engineering Science, University of Oxford · Oxford-Man Institute of Quantitative Finance, University of Oxford

  19. TraderBench: How Robust Are AI Agents in Adversarial Capital Markets?

    Feb 27, 2026Xiaochuang Yuan, Hui Xu, Silvia Xu +2AI Agent EvaluationAI Agent Benchmarks

    UC Santa Cruz

  20. Toward Expert Investment Teams:A Multi-Agent LLM System with Fine-Grained Trading Tasks

    Feb 26, 2026Kunihiro Miyazaki, Takanobu Kawahara, Stephen Roberts +1Multi-Agent LLM SystemsAlgorithmic Trading

    Japan Digital Design, Inc. Tokyo, Japan · Department of Engineering Science University of Oxford United Kingdom

  21. Janus-Q: End-to-End Event-Driven Trading via Hierarchical-Gated Reward Modeling

    Feb 23, 2026Xiang Li, Zikai Wei, Yiyan Qi +6Algorithmic TradingReward Modeling

    The Hong Kong University of Science and Technology (Guangzhou), Guangzhou, China · International Digital Economy Academy, Shenzhen, China

  22. FactorMiner: A Self-Evolving Agent with Skills and Experience Memory for Financial Alpha Discovery

    Feb 16, 2026Yanlong Wang, Jian Xu, Hongkang Zhang +3Alpha Factor DiscoveryAlgorithmic Trading

    Tsinghua Shenzhen International Graduate School, Tsinghua University · Pengcheng Laboratory · Shenzhen Finance Institute, Chinese University of Hong Kong

  23. Cross-Sectional Asset Retrieval via Future-Aligned Soft Contrastive Learning

    Feb 11, 2026Hyeongmin Lee, Chanyeol Choi, Jihoon Kwon +8Contrastive LearningInformation Retrieval

    Seoul National University of Science and Technology Seoul, Republic of Korea · LinqAlpha Cambridge, MA, United States · Massachusetts Institute of Technology Cambridge, MA, United States +7

  24. WebCryptoAgent: Agentic Crypto Trading with Web Informatics

    Jan 8, 2026Ali Kurban, Wei Luo, Liangyu Zuo +5Algorithmic Trading

    1AI Geeks · 2CUHK · 3Peking University +2

  25. Alpha-R1: Alpha Screening with LLM Reasoning via Reinforcement Learning

    Dec 29, 2025Zuoyou Jiang, Li Zhao, Rui Sun +6Quantitative FinanceAlgorithmic Trading

    Shanghai Jiao Tong University Shanghai, China · FinStep, StepFun Shanghai, China · StepFun Shanghai, China

  26. ContestTrade: A Multi-Agent Trading System Based on Internal Contest Mechanism

    Aug 1, 2025Rui Sun, Li Zhao, Zuoyou Jiang +5Multi-Agent LLM SystemsLLM Agent Orchestration

    1Stepfun · 2FinStep

  27. Can LLM-based Financial Investing Strategies Outperform the Market in Long Run?

    May 11, 2025Weixian Waylon Li, Hyeonjun Kim, Mihai Cucuringu +1LLM EvaluationQuantitative Finance

    AIAI, School of Informatics The University of Edinburgh Edinburgh, United Kingdom · Global Finance Research Center Sungkyunkwan University Seoul, Republic of Korea · Dept. of Mathematics; Dept. of Statistics & OMI University of California, Los Angeles; University of Oxford United States; United Kingdom

  28. When AI Meets Finance (StockAgent): Large Language Model-based Stock Trading in Simulated Real-world Environments

    Jul 15, 2024Chong Zhang, Xinyi Liu, Zhongmou Zhang +10Multi-Agent LLM SystemsHuman Behavior Simulation

    University of Liverpool, UK · Peking University, China · Shanghai University of Finance and Economics, China +6

  29. Data-driven measures of high-frequency trading

    May 13, 2024G. Ibikunle, B. Moews, D. Muravyev +1Quantitative FinanceAlgorithmic Trading

    Edinburgh Centre for Financial Innovations, The University of Edinburgh · RoZetta Institute, Sydney · Centre for Statistics, The University of Edinburgh +4