FaVOR: LLM-Based Agentic Framework for Factor Mining via Empirical Validation

arXiv:2608.30192 · cs.AI, cs.CE · Submitted 2026-08-31 · Read on arXiv

cs.AI, cs.CE

Submitted: 2026-08-31

Updated: 2026-08-31

Code: https://github.com/damilab/FaVOR

License: http://arxiv.org/licenses/nonexclusive-distrib/1.0/

Terminology

• Consistency — 33× in this paper · explained in 3 episodes
• alpha — 18× in this paper · explained in 1 episode
• Benchmark — 16× in this paper · explained in 2 episodes
• Information Ratio — 9× in this paper
• Agentic Framework — 7× in this paper · explained in 6 episodes
• Annualized Return — 7× in this paper
• Interpretability — 7× in this paper · explained in 15 episodes
• Core — 6× in this paper · explained in 2 episodes
• Cumulative Return — 5× in this paper
• Robustness — 5× in this paper · explained in 5 episodes
• Alignment — 4× in this paper · explained in 1 episode
• Multi-Agent System — 4× in this paper · explained in 6 episodes
• Transformer — 4× in this paper · explained in 2 episodes
• Ablation — 3× in this paper · explained in 1 episode
• Adam — 3× in this paper · explained in 2 episodes
• Alpha Decay — 2× in this paper · explained in 1 episode
• Commentary — 2× in this paper · explained in 2 episodes
• Reinforcement Learning — 2× in this paper · explained in 4 episodes
• Semantic Alignment — 2× in this paper · explained in 3 episodes
• Fidelity — 1× in this paper · explained in 2 episodes
• Generative AI — 1× in this paper · explained in 2 episodes
• Hallucination — 1× in this paper · explained in 3 episodes
• Large Language Models (LLMs) — 1× in this paper · explained in 6 episodes
• Multi-Agent Framework — 1× in this paper · explained in 3 episodes
• Provenance — 1× in this paper · explained in 4 episodes
• Redundancy — 1× in this paper · explained in 2 episodes
• Trace — 1× in this paper · explained in 2 episodes
• Verification — 1× in this paper · explained in 2 episodes

Sources

• The Llama 3 Herd of Models
• Empirical Asset Pricing with Large Language Model Agents
• Gemini 2.5: Pushing the Frontier with Advanced Reasoning, Multimodality, Long Context, and Next Generation Agentic Capabilities
• AlphaEval: A Comprehensive and Efficient Evaluation Framework for Formula Alpha Mining
• GPT-4o System Card
• Alpha-R1: Alpha Screening with LLM Reasoning via Reinforcement Learning
• Deficiency of Large Language Models in Finance: An Empirical Examination of Hallucination
• R&D-Agent-Quant: A Multi-Agent Framework for Data-Centric Factors and Model Joint Optimization
• Can Large Language Models Trade? Testing Financial Theories with LLM Agents in Market Simulations
• LLM-Powered Multi-Agent System for Automated Crypto Portfolio Management
• Beyond the Black Box: Interpretability of LLMs in Finance
• QuantAgent: Seeking Holy Grail in Trading by Self-Improving Large Language Model
• Qwen3 Technical Report
• Qlib: An AI-oriented Quantitative Investment Platform

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