Summoning the Oracle to Slay It: Mitigating Look-Ahead Bias in Financial Backtesting with Large Language Models

arXiv:2605.24564 · cs.AI, cs.CE, cs.LG · Submitted 2026-05-23 · Read on arXiv

cs.AI, cs.CE, cs.LG

Submitted: 2026-05-23

Updated: 2026-08-29

Code: https://github.com/virattt/ai-hedge-fund

Terminology

• Benchmark — 19× in this paper · explained in 2 episodes
• Calibration — 13× in this paper · explained in 7 episodes
• Accuracy — 12× in this paper · explained in 1 episode
• Alignment — 12× in this paper · explained in 1 episode
• Context-Aware Decoding — 8× in this paper
• Adaptation — 4× in this paper · explained in 1 episode
• Transformer — 4× in this paper · explained in 2 episodes
• Hallucination — 3× in this paper · explained in 4 episodes
• Large Language Models (LLMs) — 3× in this paper · explained in 6 episodes
• Fine-Tuning — 2× in this paper · explained in 5 episodes
• Machine Unlearning — 2× in this paper · explained in 2 episodes
• Robustness — 2× in this paper · explained in 5 episodes
• Diffusion Model — 1× in this paper · explained in 8 episodes
• Diffusion Models — 1× in this paper · explained in 6 episodes
• Distribution Shift — 1× in this paper · explained in 6 episodes
• Homogenization — 1× in this paper · explained in 2 episodes
• Hyperparameters — 1× in this paper · explained in 2 episodes
• Information Leakage — 1× in this paper · explained in 2 episodes
• Interpretability — 1× in this paper · explained in 15 episodes
• Knowledge Graph — 1× in this paper · explained in 7 episodes
• Knowledge graphs — 1× in this paper · explained in 2 episodes
• Multi-Agent System — 1× in this paper · explained in 6 episodes
• Reinforcement Learning — 1× in this paper · explained in 4 episodes
• Selection Bias — 1× in this paper · explained in 4 episodes
• Trace — 1× in this paper · explained in 2 episodes
• Verifier — 1× in this paper · explained in 2 episodes

Sources

• Look-Ahead-Bench: a Standardized Benchmark of Look-ahead Bias in Point-in-Time LLMs for Finance
• Evaluating Large Language Models Trained on Code
• Training Verifiers to Solve Math Word Problems
• AlphaQuanter: An End-to-End Tool-Augmented Agentic Reinforcement Learning Framework for Stock Trading
• Who's Harry Potter? Approximate Unlearning in LLMs
• Evaluating LLMs in Finance Requires Explicit Bias Consideration
• Detecting Lookahead Bias in LLM Forecasts
• Can LLM-based Financial Investing Strategies Outperform the Market in Long Run?
• Time is Not a Label: Continuous Phase Rotation for Temporal Knowledge Graphs and Agentic Memory
• Rethinking Machine Unlearning for Large Language Models
• TOFU: A Task of Fictitious Unlearning for LLMs
• Integrating Stock Features and Global Information via Large Language Models for Enhanced Stock Return Prediction
• FinMem: A Performance-Enhanced LLM Trading Agent with Layered Memory and Character Design
• TradingAgents: Multi-Agents LLM Financial Trading Framework

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