EvolveTrade: Experience-Driven Policy Refinement for Self-Evolving LLM Trading Agents
EvolveTrade lets LLM trading agents self-refine their tool-use policy from realized portfolio feedback, improving Sharpe ratios.
EvolveTrade treats a tool-using trading agent's system prompt as a text-parameterized policy that a Policy Agent revises after each update interval using accumulated decision traces and realized portfolio feedback, keeping the backbone LLM fixed. Experiments across multiple market regimes and two LLM backbones show improved Sharpe Ratio and Cumulative Return over fixed-policy baselines in most settings. Behavioral analyses show evolved policies increase code-mediated analysis and activate regime-relevant computations, with case-level attributions linking policy changes to returns.