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StockBench: Can LLM Agents Trade Stocks Profitably In Real-world Markets? Episode 1222

StockBench: Can LLM Agents Trade Stocks Profitably In Real-world Markets?

· 30:49

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🤗 Upvotes: 24 | cs.LG, cs.CL

Authors:
Yanxu Chen, Zijun Yao, Yantao Liu, Jin Ye, Jianing Yu, Lei Hou, Juanzi Li

Title:
StockBench: Can LLM Agents Trade Stocks Profitably In Real-world Markets?

Arxiv:
http://arxiv.org/abs/2510.02209v1

Abstract:
Large language models (LLMs) have recently demonstrated strong capabilities as autonomous agents, showing promise in reasoning, tool use, and sequential decision-making. While prior benchmarks have evaluated LLM agents in domains such as software engineering and scientific discovery, the finance domain remains underexplored, despite its direct relevance to economic value and high-stakes decision-making. Existing financial benchmarks primarily test static knowledge through question answering, but they fall short of capturing the dynamic and iterative nature of trading. To address this gap, we introduce StockBench, a contamination-free benchmark designed to evaluate LLM agents in realistic, multi-month stock trading environments. Agents receive daily market signals -- including prices, fundamentals, and news -- and must make sequential buy, sell, or hold decisions. Performance is assessed using financial metrics such as cumulative return, maximum drawdown, and the Sortino ratio. Our evaluation of state-of-the-art proprietary (e.g., GPT-5, Claude-4) and open-weight (e.g., Qwen3, Kimi-K2, GLM-4.5) models shows that while most LLM agents struggle to outperform the simple buy-and-hold baseline, several models demonstrate the potential to deliver higher returns and manage risk more effectively. These findings highlight both the challenges and opportunities in developing LLM-powered financial agents, showing that excelling at static financial knowledge tasks does not necessarily translate into successful trading strategies. We release StockBench as an open-source resource to support reproducibility and advance future research in this domain.


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