Can LLMs profitably manage investment funds?
DeepFund: Will LLM be Professional at Fund Investment? A Live Arena Perspective
March 25, 2025
https://arxiv.org/pdf/2503.18313This paper introduces DeepFund, a platform for evaluating how well large language models (LLMs) can make financial investment decisions. It argues current benchmarks are flawed due to data leakage (LLMs being tested on historical data they've already seen), a focus on theory over practice, too much human intervention, and difficulty maintaining up-to-date data. DeepFund uses a multi-agent system where different LLMs act as analysts (technical, fundamental, insider, media) and managers, making decisions in a simulated live trading environment with forward-testing (using data the models haven't been trained on). This allows for more realistic and rigorous evaluation of LLM-based trading strategies.