Strat-LLM: LLM-Based Stock Trading with Real-Time Multi-Source Signals
The newly introduced Strat-LLM framework, based on Stratified Strategy Alignment, allows LLMs to operate as independent trading agents. Set to function in a live-forward environment throughout 2025, it combines sequential pricing, real-time news updates, and annual reports to prevent look-ahead bias. Stress tests conducted on A-share and U.S. markets indicate that models focused on reasoning excel in Free Mode, while conventional models require Strict Mode for risk management. The effectiveness of alignment varies with market conditions: Free and Guided modes leverage momentum during uptrends, whereas Strict Mode helps reduce losses in downtrends. Mid-scale models (35B) achieve the best performance under stringent constraints, while ultra-large models (122B) experience an alignment penalty.
Key facts
- Strat-LLM is a framework for LLM-based stock trading.
- It uses Stratified Strategy Alignment.
- Operates in a live-forward setting throughout 2025.
- Integrates sequential prices, real-time news, and annual reports.
- Eliminates look-ahead bias.
- Tested on A-share and U.S. markets.
- Reasoning-heavy models peak in Free Mode.
- Standard models require Strict Mode as risk anchor.
- Free and Guided modes capture momentum in uptrends.
- Strict Mode mitigates drawdowns in downtrends.
- Mid-scale models (35B) show optimal fidelity under strict constraints.
- Ultra-large models (122B) suffer an alignment tax.
Entities
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