X-Alpha: An AI Quant Researcher with Memory-Driven Self-Evolution

Abstract:Human quantitative researchers mine alpha through an iterative process: they derive hypotheses from financial knowledge, implement and test them as factors, and use the resulting evidence to guide subsequent research. Yet automated alpha mining faces three key bottlenecks: noisy financial knowledge is not directly actionable, exploration can remain confined to similar mechanisms, and feedback may remain tied to individual mining runs. To address these bottlenecks, we introduce X-Alpha, an AI Quant Researcher that couples persistent research memory with continuous hypothesis-to-code discovery. Report-to-Memory Abstraction (RMA) uses a multi-layer filtering-and-abstraction process to convert financial reports into actionable, data-compatible research paths. Memory-driven routing uses accumulated experience to redirect exploration and define a targeted search space for each cycle. Within each cycle, hypotheses are implemented as executable factors and refined through empirical validation and code-based evolution. Empirical outcomes are consolidated into persistent research memory to guide subsequent exploration, enabling memory-driven self-evolution across cycles. We evaluate X-Alpha on five equity indices spanning mainland China, the United States, and Hong Kong, with comprehensive experiments centered on CSI300. Experiments show strong alpha discovery performance against baselines, with improvements in factor quality and signal diversity and consistent generation-level gains across multiple markets and prediction horizons.

Computation and Language (cs.CL)

arXiv:2607.08332 [cs.CL]

(or arXiv:2607.08332v3 [cs.CL] for this version)

https://doi.org/10.48550/arXiv.2607.08332 Focus to learn more arXiv-issued DOI via DataCite

arXivLabs is a framework that allows collaborators to develop and share new arXiv features directly on our website.

Both individuals and organizations that work with arXivLabs have embraced and accepted our values of openness, community, excellence, and user data privacy. arXiv is committed to these values and only works with partners that adhere to them.

Have an idea for a project that will add value for arXiv's community? Learn more about arXivLabs.