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Do AI traders actually pick winning stocks, or just get lucky?

Taojie Zhu, Wentao Zhao, Rui Sun, Beidi Luan, Jiacheng Lu, Sinuo Wang, Jing Li, Daxin Jiang, Yonghong He, Zuo Bai

May 27, 2026

Researchers built a test for LLM trading agents that blocks models from cheating on historical data (ticker symbols, dates, prices) and breaks down portfolio returns to isolate real stock-picking skill. Testing ten frontier LLMs on Chinese stocks, they found agents mostly captured broad market and style exposure rather than genuine alpha—suggesting AI traders haven't learned to pick winners, just to ride waves.
Published as From Knowing to Doing: A Memory-Controlled Benchmark for LLM Trading Agents on Stock Markets arXiv:2605.28359
Read the original paper →