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LLMDE: A Large Language Model-Driven Differential Evolution Algorithm for Portfolio Optimization

100

arXiv:2609.16846v1 Announce Type: new Abstract: This study proposes a Large Language Model-Driven Differential Evolution (LLMDE) algorithm to reduce the reliance on handcrafted hyperparameter design. The proposed algorithm leverages a prompt engineering strategy, allowing large language models (LLMs) to dynamically select mutation strategies and configure control parameters guided by optimization feedback, thus enhancing the performance of the DE algorithm. We evaluate the performance of LLMDE on the CEC2022 benchmark suite, comparing it with standard DE and representative metaheuristics. Furthermore, we employ factor analysis and K-means clustering for stock selection, and then apply LLMDE to solve the Conditional Value at Risk (CVaR) portfolio optimization problem using the selected stocks, subject to budget and minimum expected return constraints. Experimental results demonstrate that LLMDE achieves competitive performance on the benchmark suite while continuously generating high-qu...

arXiv Neural/NEabout 2 hours ago
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LLMDE: A Large Language Model-Driven Differential Evolution Algorithm for Portfolio Optimization | Steek AI Signal | Steek