Team of specialized AI agents collaborate to manage crypto portfolios with explainable decisions.
It integrates multi-modal data and expert knowledge to make explainable investment decisions and outperform market benchmarks.
-----
https://arxiv.org/abs/2501.00826
🤔 Original Problem:
→ Single LLMs struggle with complex crypto investment tasks due to limited domain knowledge and inability to process multi-modal data effectively
→ Traditional deep learning approaches lack transparency in decision-making, reducing investor trust
→ Existing solutions focus only on major cryptocurrencies like Bitcoin and Ethereum, using limited data types
-----
🛠️ Solution in this Paper:
→ The framework uses specialized agent teams for data collection, literature analysis, and investment decisions
→ Expert training module fine-tunes agents using historical data and academic research
→ Market team analyzes trends and determines cash-crypto allocation using news and market factors
→ Crypto team selects individual cryptocurrencies based on technical and fundamental analysis
→ Unique intrateam collaboration combines confidence scores within agent groups
→ Interteam collaboration enables information sharing between market and crypto teams
-----
💡 Key Insights:
→ Multi-agent approach outperforms single LLM models in both accuracy and portfolio returns
→ Fine-tuning with domain-specific knowledge significantly improves prediction quality
→ Collaboration mechanisms reduce prediction errors and enhance decision quality
→ The framework generates professional, consistent explanations for investment decisions
-----
📊 Results:
→ Achieved highest classification accuracy of 0.5248 and MCC score of 0.0428
→ Portfolio performance exceeded market benchmarks with 0.8347 cumulative return
→ Generated 0.0172 weekly return mean with 1.5425 Sharpe ratio
→ Outperformed in both boom (3.8430 Sharpe) and bust (-2.7125 Sharpe) market periods
------
Are you into AI and LLMs❓ Join my daily AI newsletter. I will send you 7 emails a week analyzing the highest signal AI developments. ↓↓
🎉 https://rohanpaul.substack.com/
Share this post