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AlgoEvolve: LLM-driven Meta-evolution of Algorithmic Trading Programs

Jun 2026 · arXiv.org · Vol abs/2606.26173 · 0 citations · 39 references
Computer Science

TL;DR

AlgoEvolve is presented, an LLM-driven evolutionary framework that generates, evaluates, and iteratively improves executable trading strategies, and introduces a meta-evolutionary outer loop that evolves the prompts guiding program synthesis in the inner loop.

Abstract

Recent work shows that Large Language Models (LLMs) can act as semantic mutation operators for the evolutionary discovery of programs and proofs. Most current applications focus on static coding benchmarks. We extend this paradigm to algorithmic trading. This domain is uniquely challenging because it is noisy, non-stationary, and highly discontinuous. We present AlgoEvolve, an LLM-driven evolutionary framework that generates, evaluates, and iteratively improves executable trading strategies. These strategies are expressed as Python code and evaluated through a rigorous testing protocol. Across multiple experiments, the system exhibits emergent regime-adaptive strategy logic, including autonomous shifts in trading rules. We further introduce a meta-evolutionary outer loop that evolves the prompts guiding program synthesis in the inner loop. This outer loop discovers improved search heuristics. These heuristics balance exploration and exploitation while reducing zero-trade failures. They consistently outperform initial human-designed instructions. The results demonstrate that LLM-based semantic evolution provides a viable approach for continual program synthesis in complex environments.

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