DeepFund: Will LLM be Professional at Fund Investment? A Live Arena Perspective

• URL: http://arxiv.org/abs/2503.18313v1
• Date: Mon, 24 Mar 2025 03:32:13 GMT
• Title: DeepFund: Will LLM be Professional at Fund Investment? A Live Arena Perspective
• Authors: Changlun Li, Yao Shi, Yuyu Luo, Nan Tang,
• Abstract summary: This paper introduces DeepFund, a comprehensive platform for evaluating Large Language Models (LLMs) in a simulated live environment.<n>Our approach implements a multi agent framework where LLMs serve as both analysts and managers, creating a realistic simulation of investment decision making.<n>We provide a web interface that visualizes model performance across different market conditions and investment parameters, enabling detailed comparative analysis.
• Score: 10.932591941137698
• License: http://arxiv.org/licenses/nonexclusive-distrib/1.0/
• Abstract: Large Language Models (LLMs) have demonstrated impressive capabilities across various domains, but their effectiveness in financial decision making, particularly in fund investment, remains inadequately evaluated. Current benchmarks primarily assess LLMs understanding of financial documents rather than their ability to manage assets or analyze trading opportunities in dynamic market conditions. A critical limitation in existing evaluation methodologies is the backtesting approach, which suffers from information leakage when LLMs are evaluated on historical data they may have encountered during pretraining. This paper introduces DeepFund, a comprehensive platform for evaluating LLM based trading strategies in a simulated live environment. Our approach implements a multi agent framework where LLMs serve as both analysts and managers, creating a realistic simulation of investment decision making. The platform employs a forward testing methodology that mitigates information leakage by evaluating models on market data released after their training cutoff dates. We provide a web interface that visualizes model performance across different market conditions and investment parameters, enabling detailed comparative analysis. Through DeepFund, we aim to provide a more accurate and fair assessment of LLMs capabilities in fund investment, offering insights into their potential real world applications in financial markets.

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