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A survey on large language model-based alpha mining

Authors: Junjie ZHANG; Shuoling LIU; Tongzhe ZHANG; Yuchen SHI

DOI: 10.1631/FITEE_2500386Status: Verified Translated Edition
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Key Findings in This Report

• LLM-based alpha mining frameworks provide a scalable interface between human expertise and full automation, enabling rapid transformation of qualitative hypotheses into testable alpha factors. • LLMs serve multiple functional roles in alpha mining—as miners, evaluators, and interactive assistants—offering semantic depth alongside computational speed. • Critical remaining challenges include simplified performance evaluation, limited numerical reasoning, lack of diversity and originality, weak exploration dynamics, temporal data leakage, and black-box/compliance risks. • Future research should focus on reasoning alignment, new data modalities, improved evaluation protocols, and integration of LLMs into general-purpose quantitative systems to realize a complementary human-AI paradigm.