Agent Trading Arena: A Study on Numerical Understanding in LLM-Based Agents

Tianmi Ma, Jiawei Du, Wenxin Huang, Wenjie Wang, Liang Xie, Xian Zhong and Joey Tianyi Zhou

Papers from arXiv.org

Abstract: Large language models (LLMs) have demonstrated remarkable capabilities in natural language tasks, yet their performance in dynamic, real-world financial environments remains underexplored. Existing approaches are limited to historical backtesting, where trading actions cannot influence market prices and agents train only on static data. To address this limitation, we present the Agent Trading Arena, a virtual zero-sum stock market in which LLM-based agents engage in competitive multi-agent trading and directly impact price dynamics. By simulating realistic bid-ask interactions, our platform enables training in scenarios that closely mirror live markets, thereby narrowing the gap between training and evaluation. Experiments reveal that LLMs struggle with numerical reasoning when given plain-text data, often overfitting to local patterns and recent values. In contrast, chart-based visualizations significantly enhance both numerical reasoning and trading performance. Furthermore, incorporating a reflection module yields additional improvements, especially with visual inputs. Evaluations on NASDAQ and CSI datasets demonstrate the superiority of our method, particularly under high volatility. All code and data are available at https://github.com/wekjsdvnm/Agent-Trading-Arena.

Date: 2025-02, Revised 2025-09
New Economics Papers: this item is included in nep-ain, nep-big and nep-cmp
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