CryptoTrade: A Reflective LLM-based Agent to Guide Zero-shot Cryptocurrency Trading

Yuan Li, Bingqiao Luo, Qian Wang, Nuo Chen, Xu Liu, Bingsheng He


Abstract
The utilization of Large Language Models (LLMs) in financial trading has primarily been concentrated within the stock market, aiding in economic and financial decisions. Yet, the unique opportunities presented by the cryptocurrency market, noted for its on-chain data’s transparency and the critical influence of off-chain signals like news, remain largely untapped by LLMs. This work aims to bridge the gap by developing an LLM-based trading agent, CryptoTrade, which uniquely combines the analysis of on-chain and off-chain data. This approach leverages the transparency and immutability of on-chain data, as well as the timeliness and influence of off-chain signals, providing a comprehensive overview of the cryptocurrency market. CryptoTrade incorporates a reflective mechanism specifically engineered to refine its daily trading decisions by analyzing the outcomes of prior trading decisions. This research makes two significant contributions. Firstly, it broadens the applicability of LLMs to the domain of cryptocurrency trading. Secondly, it establishes a benchmark for cryptocurrency trading strategies. Through extensive experiments, CryptoTrade has demonstrated superior performance in maximizing returns compared to time-series baselines, but not compared to traditional trading signals, across various cryptocurrencies and market conditions. Our code and data are available at https://github.com/Xtra-Computing/CryptoTrade
Anthology ID:
2024.emnlp-main.63
Volume:
Proceedings of the 2024 Conference on Empirical Methods in Natural Language Processing
Month:
November
Year:
2024
Address:
Miami, Florida, USA
Editors:
Yaser Al-Onaizan, Mohit Bansal, Yun-Nung Chen
Venue:
EMNLP
SIG:
Publisher:
Association for Computational Linguistics
Note:
Pages:
1094–1106
Language:
URL:
https://aclanthology.org/2024.emnlp-main.63/
DOI:
10.18653/v1/2024.emnlp-main.63
Bibkey:
Cite (ACL):
Yuan Li, Bingqiao Luo, Qian Wang, Nuo Chen, Xu Liu, and Bingsheng He. 2024. CryptoTrade: A Reflective LLM-based Agent to Guide Zero-shot Cryptocurrency Trading. In Proceedings of the 2024 Conference on Empirical Methods in Natural Language Processing, pages 1094–1106, Miami, Florida, USA. Association for Computational Linguistics.
Cite (Informal):
CryptoTrade: A Reflective LLM-based Agent to Guide Zero-shot Cryptocurrency Trading (Li et al., EMNLP 2024)
Copy Citation:
PDF:
https://aclanthology.org/2024.emnlp-main.63.pdf