FinCon: A Synthesized LLM Multi-Agent System with Conceptual Verbal Reinforcement for Enhanced Financial Decision Making
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| Main Authors: | , , , , , , , , , , , , , , , , |
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| Format: | Preprint |
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2024
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| _version_ | 1866909379273424896 |
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| author | Yu, Yangyang Yao, Zhiyuan Li, Haohang Deng, Zhiyang Cao, Yupeng Chen, Zhi Suchow, Jordan W. Liu, Rong Cui, Zhenyu Xu, Zhaozhuo Zhang, Denghui Subbalakshmi, Koduvayur Xiong, Guojun He, Yueru Huang, Jimin Li, Dong Xie, Qianqian |
| author_facet | Yu, Yangyang Yao, Zhiyuan Li, Haohang Deng, Zhiyang Cao, Yupeng Chen, Zhi Suchow, Jordan W. Liu, Rong Cui, Zhenyu Xu, Zhaozhuo Zhang, Denghui Subbalakshmi, Koduvayur Xiong, Guojun He, Yueru Huang, Jimin Li, Dong Xie, Qianqian |
| contents | Large language models (LLMs) have demonstrated notable potential in conducting complex tasks and are increasingly utilized in various financial applications. However, high-quality sequential financial investment decision-making remains challenging. These tasks require multiple interactions with a volatile environment for every decision, demanding sufficient intelligence to maximize returns and manage risks. Although LLMs have been used to develop agent systems that surpass human teams and yield impressive investment returns, opportunities to enhance multi-sourced information synthesis and optimize decision-making outcomes through timely experience refinement remain unexplored. Here, we introduce the FinCon, an LLM-based multi-agent framework with CONceptual verbal reinforcement tailored for diverse FINancial tasks. Inspired by effective real-world investment firm organizational structures, FinCon utilizes a manager-analyst communication hierarchy. This structure allows for synchronized cross-functional agent collaboration towards unified goals through natural language interactions and equips each agent with greater memory capacity than humans. Additionally, a risk-control component in FinCon enhances decision quality by episodically initiating a self-critiquing mechanism to update systematic investment beliefs. The conceptualized beliefs serve as verbal reinforcement for the future agent's behavior and can be selectively propagated to the appropriate node that requires knowledge updates. This feature significantly improves performance while reducing unnecessary peer-to-peer communication costs. Moreover, FinCon demonstrates strong generalization capabilities in various financial tasks, including single stock trading and portfolio management. |
| format | Preprint |
| id |
arxiv_https___arxiv_org_abs_2407_06567 |
| institution | arXiv |
| publishDate | 2024 |
| record_format | arxiv |
| spellingShingle | FinCon: A Synthesized LLM Multi-Agent System with Conceptual Verbal Reinforcement for Enhanced Financial Decision Making Yu, Yangyang Yao, Zhiyuan Li, Haohang Deng, Zhiyang Cao, Yupeng Chen, Zhi Suchow, Jordan W. Liu, Rong Cui, Zhenyu Xu, Zhaozhuo Zhang, Denghui Subbalakshmi, Koduvayur Xiong, Guojun He, Yueru Huang, Jimin Li, Dong Xie, Qianqian Computation and Language Large language models (LLMs) have demonstrated notable potential in conducting complex tasks and are increasingly utilized in various financial applications. However, high-quality sequential financial investment decision-making remains challenging. These tasks require multiple interactions with a volatile environment for every decision, demanding sufficient intelligence to maximize returns and manage risks. Although LLMs have been used to develop agent systems that surpass human teams and yield impressive investment returns, opportunities to enhance multi-sourced information synthesis and optimize decision-making outcomes through timely experience refinement remain unexplored. Here, we introduce the FinCon, an LLM-based multi-agent framework with CONceptual verbal reinforcement tailored for diverse FINancial tasks. Inspired by effective real-world investment firm organizational structures, FinCon utilizes a manager-analyst communication hierarchy. This structure allows for synchronized cross-functional agent collaboration towards unified goals through natural language interactions and equips each agent with greater memory capacity than humans. Additionally, a risk-control component in FinCon enhances decision quality by episodically initiating a self-critiquing mechanism to update systematic investment beliefs. The conceptualized beliefs serve as verbal reinforcement for the future agent's behavior and can be selectively propagated to the appropriate node that requires knowledge updates. This feature significantly improves performance while reducing unnecessary peer-to-peer communication costs. Moreover, FinCon demonstrates strong generalization capabilities in various financial tasks, including single stock trading and portfolio management. |
| title | FinCon: A Synthesized LLM Multi-Agent System with Conceptual Verbal Reinforcement for Enhanced Financial Decision Making |
| topic | Computation and Language |
| url | https://arxiv.org/abs/2407.06567 |