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"Can Large Language Models Effectively Process and Execute Financial Trading Instructions?"

The podcast on this paper is generated with Google's Illuminate.

This paper investigates how effectively LLMs can process and execute financial trading instructions, proposing a pipeline to convert natural language trading orders into standardized formats.

https://arxiv.org/abs/2412.04856

Original Problem 🤔:

Current trading systems struggle to process natural language inputs, especially with complex or incomplete trading orders. This creates a gap between human-generated strategies and automated execution systems.

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Solution in this Paper 🛠️:

→ Developed an intelligent trade instruction recognition pipeline that converts natural language into standardized JSON format

→ Created a 500-item dataset of diverse trading instructions, enhanced with strategic noise injection and data segmentation

→ Designed evaluation metrics to assess LLMs' performance in processing trading instructions

→ Implemented comprehensive security checks to verify card ownership and prevent unauthorized access

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Key Insights 💡:

→ LLMs show high generation rates but struggle with accuracy and completeness

→ Models tend to over-interrogate, collecting more information than necessary

→ Security vulnerabilities exist in token access and ownership verification

→ Balancing execution efficiency with model accuracy remains challenging

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Results 📊:

→ Generation rates: 87.50% to 98.33%

→ Accuracy rates: 5% to 10%

→ Missing rates: 14.29% to 67.29%

→ Follow-up rates: 100% across all tested models