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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.

Hugging Face daily papers · 2d agoAI research

What LLM Trading Agents Actually Do in Production: A Six-Month, Population-Scale Record from Two Fleets

Six-month record of 7.5M LLM trading agent invocations shows volatility-blind sizing, minimal upside capture, and no directional edge across two fleets.

The study records autonomous LLM trading agents in production across DX Terminal Pro (3,505 user-funded vaults trading real ETH in Base memecoin markets) and the DXAP fleet (500-599 agents on Hyperliquid perpetuals), spanning roughly six months, 7.5M single-model invocations and about 300K onchain actions. A risk slider explains leverage (+0.425 per level), median leverage is 5.0x in every volatility sextile, and one posture-slider cell holds 62% of liquidations. Agents capture little upside: 43.2% of positions saw +300 bps favorable excursion within 24h yet 49.3% of those closed negative, while the DXAP fleet trails a matched retail benchmark (41% vs 50% roundtrip win rate). A paired-replay league of frontier models finds decision quality statistically indistinguishable at this horizon.

Hugging Face daily papers · 13d agoAI research

Distill Globally, Adapt Locally: Reasoning Distillation and Product-Type Test-Time Training for Scalable Trade-Up Recommendation

A distillation framework compresses LLM reasoning into a 15.5M-parameter trade-up recommendation model reaching AUC 0.941 with product-type test-time training.

The paper targets trade-up recommendation, which identifies higher-quality alternatives that preserve customer purchase intent. A retrieval-augmented few-shot LLM teacher generates labels and rationales that supervise a compact embedding-pair classifier; at inference the 15.5M-parameter student uses only two precomputed 768-dimensional embeddings with no LLM calls. On 8,352 annotated pairs, label-only training scored AUC 0.912, reasoning distillation reached 0.924, and product-type test-time training lifted it to 0.941 with average precision 0.940. The distilled student is roughly 5,000x faster and 10,000x cheaper than direct LLM inference on a 100K-pair proxy catalog.

arXiv cs.AI / cs.LG / cs.CL · 12d agoAI research

Training Specialist Models without Reasoning Trajectories for Domain Expert Distillation

Study shows specialists trained on question-answer pairs implicitly select latent reasoning trajectories, and tuning choices control the precision-generalization trade-off in distillation.

The work demonstrates that specialist optimization implicitly selects from a latent trajectory space when specialists are trained only on question-answer pairs without explicit reasoning supervision. Using student distillation as an agnostic probe across 27 specialist-student pairings, specialization-generalization profiles correlate exceptionally strongly. Explicitly controlling the specialist's distributional drift systematically shifts both teacher and distilled student along a controllable trade-off between domain precision and general-capability retention across chemistry, physics, and multilingual settings, even across divergent model families.

Hugging Face daily papers · 5d agoAI research

Forgetting Only What Matters: Layer-Selective Unlearning toward Robust LLMs

Researchers introduce FOM-UL, a layer-selective machine unlearning framework that improves forgetting-utility trade-offs and resists knowledge recovery after quantization.

FOM-UL selects transformer layers for unlearning using a forget-to-retain significance score, concentrating parameter updates on layers highly influential for the forget set while leaving most of the model unchanged. It reduces residual memorization versus GA, NPO, KLD, SURE, ReLearn, and LUNAR-based baselines on TOFU, KnowUnDo, and MUSE-style evaluations while preserving retain-set utility. Under 8-bit and 4-bit post-training quantization and adversarial prompts, it maintains stronger suppression of forgotten content, addressing brittleness of diffuse unlearning updates.

arXiv cs.AI / cs.LG / cs.CL · 7d agoAI research1

RetroThinker: Enabling Retrospective Thinking in Speech LLMs

RetroThinker is a post-training framework letting the Moshi speech LLM self-correct reasoning mid-stream, adding 11% GSM8K accuracy at similar latency.

Researchers introduce RetroThinker, a multi-stage post-training framework that equips the Moshi speech LLM to verify and forward-correct chain-of-thought steps during streaming inference. It combines supervised fine-tuning on curated retrospective thinking data with length-based direct preference optimization (DPO). On GSM8K it achieves an 11% absolute accuracy gain over non-retrospective baselines at comparable latency.

arXiv cs.AI / cs.LG / cs.CL · 6d agoAI research1

Train Smarter, Not Harder: Switching Signal-Guided Training in Active Learning

HybridAL is an active-learning training schedule that switches from retraining to fine-tuning on stabilization signals, saving up to 49% time.

Researchers find that choosing between retraining from scratch and fine-tuning is an exploitable decision variable in active learning: retraining helps in early rounds while fine-tuning is safer once the model trajectory stabilizes. HybridAL monitors an online stabilization signal using spectral exponent change and accuracy change, switching from retraining to fine-tuning after sustained stabilization. Across three encoder backbones and six text-classification tasks with five seeds each, HybridAL keeps endpoint macro-F1 non-inferior within a 0.010 margin, saves up to 49% of retraining time, and improves the time-calibration trade-off measured by negative log-likelihood.

Hugging Face daily papers · 11d agoAI research

Google Research Introduces Retrieve-for-Train (R4T): An RL-Compiled Diffusion Retriever for 12× to 20× Faster Query Fan-Out

Google Research introduced R4T, an RL-trained fan-out pipeline distilled into a 53.9M-parameter diffusion retriever achieving 12x-20x faster query fan-out.

Google Research introduced Retrieve-for-Train (R4T), which trains a fan-out language model with GRPO plus soft PPO regularization, then distills query fan-out into a 53.9M-parameter diffusion transformer that generates all retrieval embeddings in a single non-autoregressive pass. A three-term reward (groundedness 0.6, diversity 0.2 via Vendi Score, alignment 0.2) prevents paraphrastic collapse and reward hacking during training. On the Polyvore dataset, Gemma3-4B R4T-FOLM averaged 49.1 versus 40.9 for Best-of-N, and the diffusion retriever cut fan-out latency from 1.46s to 0.07s at batch size 8, a consistent 12x-20x speedup over autoregressive methods.

MarkTechPost · 5h agoAI research

Agent Harness vs Agent Framework vs MCP: Which Layer Owns the Loop, State, Tools, Permissions, and Recovery

Architecture explainer separates agent harnesses, frameworks, and MCP by which layer owns the loop, state, permissions, and recovery.

The article distinguishes agent harnesses (OpenAI Codex, Claude Agent SDK), which own the execution loop, sandbox, permission model, and recovery; frameworks (LangGraph, OpenAI Agents SDK, Microsoft Agent Framework), which supply composable primitives; and MCP, a stateless JSON-RPC wire protocol governed by the Linux Foundation's Agentic AI Foundation since December 2025. An ownership matrix maps the execution loop, state, tool transport, permissions, recovery, sandboxing, and multi-agent orchestration to each layer. The 2026-07-28 MCP specification made the protocol fully stateless, retiring the initialize handshake and session headers.

MarkTechPost · 2d agoAI research1

GPT-5.6 Luna vs. GPT-6 Astra: Is a $1.20 Model Good Enough for Code Review?

Entelligence benchmarks GPT-5.6 Luna ($1.20/M output) against GPT-6 Astra for code review: Luna found 69 verified bugs at 3.6% of Astra's cost.

Entelligence compared GPT-5.6 Luna ($0.20/$1.20 per million tokens) against GPT-6 Astra ($10/$50) on 50 benchmark pull requests from Cal.com, Sentry, Discourse, Keycloak, and Grafana. Astra verified 92 bugs versus Luna's 69, with precision of 96% versus 74%, and Astra caught 19 of 24 security bugs while Luna found only 9. Luna cost $0.20 total versus Astra's $5.66 and reviewed faster at 23 seconds versus 36, with the widest quality gap on Keycloak authentication and permission logic (6 vs 14 verified bugs). Running both models would find 82% of the 143 verified bugs for $5.86 total.

MIT creates method to force AI to comply with safety rules

MIT researchers published HardFlow, a method enforcing hard safety constraints on flow-matching generative models' final outputs without retraining.

MIT researchers led by Zeyang Li and Navid Azizan developed HardFlow, a trajectory-optimization method that enforces strict, non-negotiable constraints on flow-matching generative models by checking rule satisfaction only at the final generation step. Published in IEEE TPAMI, it outperformed six rival projection and guidance methods on four simulated benchmarks including D3IL robotic manipulation, Maze2D, physical process control, and image editing. All results are simulation-only, with no independent reproduction yet reported.

Unsolved Problem by Fields Medalist Breached by Two High School Students

Two high school students used Claude Opus 5 and GPT-5.6 Sol to help solve an open Lorentzian polynomials problem, posting a 75-page arXiv proof.

Aayush Bathija and Prince Rohatgi of Oak Park High School, mentored by UCLA postdoc Daniel Soskin, published the 75-page paper 'Bounded Ratios for Lorentzian Polynomials' (arXiv 2609.05341), solving an open problem in Fields Medalist June Huh's Lorentzian polynomial theory. The main structural theorem extends bounded coefficient-ratio characterization from quadratic to arbitrary-degree polynomials via discrete convexity conditions. The students used Claude Opus 5 and GPT-5.6 Sol for exploration and proof ideas but independently verified all arguments; the result follows an open letter from 25 Fields Medalists voicing concerns about AI's impact on mathematical rigor.

E2A-Bench: Benchmarking Evidence-to-Action Reliability in Financial Chart Reasoning

E2A-Bench, a 969-query financial chart reasoning benchmark, finds VLMs fail evidence-to-action consistency, with fine-tuning amplifying BUY:SELL bias 4-6x.

E2A-Bench is a 969-query benchmark built from 323 HS300 constituents across three input modalities with deterministic OHLCV-derived evidence anchors, evaluating grounding, reasoning-action consistency, evidence-confidence calibration, and directional coverage via UCR, RCI, ECI, and NDR metrics. Testing 20 VLMs showed the lowest-hallucination model ranked near the bottom on coverage with only 6.4% directional coverage, and oracle-aided verification reduced unsupported claims but could collapse coverage. Financial fine-tuning amplified the BUY:SELL ratio by factors of 4.21 to 4.68 across base-fine-tuned pairs.

Hugging Face daily papers · 4d agoAI research

AlayaVista: Streaming World Modeling from Panoramic States to Perspective Video

AlayaVista is a camera-controllable streaming video world model that decouples panoramic scene evolution from perspective synthesis, trained on a 1,318-hour 4K dataset.

AlayaVista builds a 360-degree scene prior from a single perspective image, evolves it as a camera-conditioned panoramic latent state, and maps it to perspective video via a latent viewport renderer plus a perspective refiner. Chunk-autoregressive generation and few-step distillation enable efficient streaming. The authors introduce MUGEN, a real-world panoramic video dataset with 1,318 hours of at-least-4K video and rich semantic and geometric annotations.

Hugging Face daily papers · 4d agoAI research

A Hybrid LSTM-XGBoost Framework for Multi-Horizon Stock Return Prediction Across Diversified Equity Portfolios

Hybrid LSTM-XGBoost model predicts multi-horizon returns for 14 US equities, cutting 30-day RMSE to about one-third of a standalone LSTM baseline.

The paper combines a two-layer LSTM (64 hidden units) processing 60-day windows of five market features with an XGBoost regressor over a 78-dimensional hybrid feature vector including 14 technical indicators. It is trained on pooled data for 14 US equities across six sectors using chronological splits and per-stock MinMaxScaling to prevent look-ahead bias, and evaluated at 30, 90, 252, and 365 trading-day horizons. The hybrid achieves test RMSE of 0.0949 at 30 days, roughly one-third of the standalone LSTM, while 97.6% directional accuracy at 365 days largely tracks the base rate of positive returns.

arXiv cs.AI / cs.LG / cs.CL · 5d agoAI research

Training a 3.8B LLM to 0.384 CORE for $998 – Hugo Vergnes

Independent developer Hugo Vergnes trained a 3.8B-parameter Llama-style model to 0.384 CORE on 65B tokens for $998 in 43 hours on rented B200s.

Hugo Vergnes trained little-lm, a 3.848B-parameter decoder-only LLM, on 65.3B tokens in 43 hours for $998 using rented NVIDIA B200s, scoring 0.384 on the CORE benchmark and beating nanochat d32 (0.310) at similar cost. The Llama-style architecture uses RMSNorm, RoPE, GQA with 24 query and 8 KV heads, relu-squared MLPs, QK-norm, and ResFormer-style value embeddings that account for 19% of parameters. Key wins included the Muon optimizer for matrix parameters, a trapezoidal learning-rate schedule with linear cooldown, FP8 training plus vocabulary padding for roughly 33% throughput gains, and the ClimMix dataset over FineWeb-Edu. The project, inspired by Karpathy's nanochat, was built as a config-driven YAML framework for small LLM training.

Memory as Plans: World-Action Modeling with Memory-Grounded Planning

Researchers introduce MaP-WAM, decomposing memory-dependent robot manipulation into memory-grounded planning and plan-conditioned execution, achieving 83.3% on RMBench and 78% on real robots.

MaP-WAM converts long-term multimodal episodic memory — segment records with language instructions and sparse visual context — into compact plans of next-segment language goals and visual guidance. A World-Action-Progress model jointly predicts action chunks and execution progress, calibrating predictions via plan-observation alignment for adaptive segment transitions and closed-loop context updates. Structured attention keeps the executor context length fixed and enables key-value caching, yielding state-of-the-art 83.3% success on RMBench, 78.0% on real-robot tasks, and roughly constant inference latency as task history grows.

Hugging Face daily papers · 7d agoAI research

Qwen-Drive 1.0 tells you why it brakes, just don't expect the explanation to match the maneuver

Alibaba's Qwen-Drive 1.0 adds 3D perception and planning modules to Qwen3.5-4B for driving tasks, though explanations often mismatch maneuvers.

Qwen-Drive 1.0, built on Qwen3.5-4B, combines spatial perception, traffic question answering, and route planning in one vision-language model, adding a bird's-eye-view perception module and a Planning Expert trained via staged fine-tuning and reinforcement learning. The paper finds text-image models do not inherently grasp 3D space; spatial accuracy only improved when the base vision-language model itself was trained on spatial tasks, while avoiding catastrophic forgetting of general knowledge. The cut reinforcement learning-trained version halved road-departure rate in simulation from 24% to 12%, and the model beats specialized driving models in most of Qwen's benchmarks, but its explanations sometimes conflate causes like distant red lights and crossing children, and results partly rest on self-designed tests. The work follows prior findings from PaLM-E and a UC Santa Cruz adversarial sign attack on DriveLM showing VLM driving models' reasoning and spatial gaps.

The Decoder · 9d agoAI research

Online Change-point Detection for Cooperative Multi-Agent Reinforcement Learning

Researchers propose Patterns of Past Rewards (PPR), a lightweight reward-based detector that flags environment shifts in cooperative multi-agent reinforcement learning training.

The paper introduces Patterns of Past Rewards (PPR), an algorithm-agnostic detector that smooths cooperative agents' return streams and applies statistical drift testing to flag environment or task changes. Evaluation in a custom Speaker-Listener environment built on the Multi-Agent Particle Environment under two non-stationarity scenarios shows PPR balances detection speed against alarm stability. It avoids the repeated alarms of a smoothed-return baseline and the missed shifts of raw-return detection, enabling MARL systems to reliably identify major changes during training.

arXiv cs.AI / cs.LG / cs.CL · 12d agoAI research1

When Models Edit Too Much: On the Fidelity of Minimal Code Edits

A 400-task BigCodeBench evaluation shows frontier LLMs widely over-edit code; a preservation instruction cuts excess edits and raises Pass@1 by 2.3 points.

Researchers built an evaluation framework from 400 BigCodeBench problems with injected AST-level corruptions, each with a known minimal patch, to measure over-editing in LLM code repair. Even strong models like GPT-5.5 produce unnecessarily large edits despite high Pass@1. Adding a preservation instruction reduced average excess Levenshtein distance from 0.195 to 0.131, cut added cognitive complexity by 26.6%, and raised Pass@1 by 2.3 points. Reinforcement learning post-training gave the best out-of-domain edit-fidelity trade-off, while supervised fine-tuning overfit to seen corruption patterns.

Hugging Face daily papers · 14d agoAI research1

Import AI 470: No rights for machines; automating environment generation with SPADE; and building better GPU kernels with Hawkeye

METR analysis finds AI accelerating cyber vulnerability discovery, while SPADE self-play environment generation improves Qwen3 reasoning benchmark scores at 30B scale.

Import AI 470 discusses a METR research note reporting differential acceleration from AI: major acceleration in reported cyber vulnerabilities (cURL, OpenSSL, Firefox, Microsoft, NVD, OSV), minor acceleration in mathematics, and no measurable acceleration in AI-research optimization benchmarks. It also covers SPADE, a self-play framework from a multi-university team (University of Washington, Stanford, MIT, CMU, and others) that co-evolves executable training environments and agent capability using Environment Designer and Reasoning Agent roles with hint-based regret rewards. Trained on Qwen3-4B-Instruct-2507, Qwen3-8B, and Qwen3-30B-A3B-Instruct-2507 via GRPO (400 rollouts of 25 environments), SPADE lifted the 30B-A3B game-environment suite average to 58.3, +8.1 over base, and improved tool-use results across backbones. The issue also references Hawkeye for building better GPU kernels.

Import AI · 23d agoAI research1

5 useful things you'll learn in my new post-training textbook (shipping now!)

Nathan Lambert's new RLHF and post-training LLM textbook covers PPO, GRPO, GSPO, CISPO and related techniques, freely available online.

Nathan Lambert's book 'Reinforcement Learning from Human Feedback: Aligning and Post-training LLMs' is now shipping from Manning. It covers policy-gradient algorithms including PPO, GRPO, GSPO, CISPO, and RLOO, plus loss aggregation, truncated importance sampling, asynchronous RL systems, and post-training topics like rejection sampling, outcome reward models, and on-policy distillation. The book is freely available online with a 12-hour course, codebase, and exercises.

Interconnects · Aug 10, 2026AI research