CLQT: A Closed-Loop, Cost-Aware, Strategy-Consistent Benchmark for Diagnostic Evaluation of LLM Portfolio-Management Agents
arXiv:2606.29771v1 Announce Type: cross Abstract: LLM agents are increasingly cast as autonomous portfolio managers, and benchmarks have moved from financial question-answering to sequential trading. Yet most still rank agents by returns over a fixed window -- a weak proxy, since a period's return is dominated by the market path and apparent alpha can dissolve once look-ahead leakage is controlled. Such a ranking certifies neither sound reasoning, nor a consistent strategy, nor a durable edge. We introduce CLQT, which reframes closed-loop trading evaluation as diagnosis rather than ranking: an
The rapid advancement and application of LLM agents in financial domains necessitate more robust and diagnostic evaluation methods to move beyond superficial performance metrics.
This development moves beyond simple ranking-based benchmarks to diagnostic evaluation, which is critical for understanding the true capabilities, limitations, and strategic consistency of LLM agents in high-stakes financial applications.
The focus shifts from merely reporting returns to deep analysis of an LLM's investment strategy, cost awareness, and consistency, allowing for more reliable deployment and development of autonomous financial agents.
- · Sophisticated institutional investors
- · Developers of robust LLM financial agents
- · Financial risk management platforms
- · Quant research firms
- · LLM agents with inconsistent strategies
- · Naive benchmark providers
- · Retail investors relying on superficial performance metrics
Improved reliability and trust in autonomous LLM-driven financial decision-making.
Accelerated development of more sophisticated and strategically sound AI agents for portfolio management, potentially leading to new financial products.
Enhanced regulatory scrutiny and new standards for AI agent deployment in financial markets, driven by the ability to diagnose strategy and consistency.
This signal links to a primary source. Continuum Brief monitors and indexes it as part of the live intelligence stream — we do not republish source content.
Read at arXiv cs.LG