Simulating Financial Market via Large Language Model based Agents

Most economic theories typically assume that financial market participants are fully rational individuals and use mathematical models to simulate human behavior in financial markets. However, human behavior is often not entirely rational and is challenging to predict accurately with mathematical models. In this paper, we propose \textbf{A}gent-based \textbf{S}imulated \textbf{F}inancial \textbf{M}arket (ASFM), which first constructs a simulated stock market with a real order matching system. Then, we propose a large language model based agent as the stock trader, which contains the profile, observation, and tool-learning based action module. The trading agent can comprehensively understand current market dynamics and financial policy information, and make decisions that align with their trading strategy. In the experiments, we first verify that the reactions of our ASFM are consistent with the real stock market in two controllable scenarios. In addition, we also conduct experiments in two popular economics research directions, and we find that conclusions drawn in our \model align with the preliminary findings in economics research. Based on these observations, we believe our proposed ASFM provides a new paradigm for economic research.

Confucius: Iterative Tool Learning from Introspection Feedback by Easy-to-Difficult Curriculum

Augmenting large language models (LLMs) with external tools has emerged as a promising approach to extending the capability of LLMs. Although some works employ open-source LLMs for the tool learning task, most of them are trained in a controlled environment in which LLMs only learn to execute the human-provided tools. However, selecting proper tools from the large toolset is also a crucial ability for the tool learning model to be applied in real-world applications. Existing methods usually directly employ self-instruction methods to train the model, which ignores differences in tool complexity. In this paper, we propose the Confucius, a novel tool learning framework to train LLM to use complicated tools in real-world scenarios, which contains two main phases: (1) We first propose a multi-stage learning method to teach the LLM to use various tools from an easy-to-difficult curriculum; (2) thenceforth, we propose the Iterative Self-instruct from Introspective Feedback (ISIF) to dynamically construct the dataset to improve the ability to use the complicated tool. Extensive experiments conducted on both controlled and real-world settings demonstrate the superiority of our tool learning framework in the real-world application scenarios compared to both tuning-free (e.g. ChatGPT, Claude) and tuning-based baselines (e.g. GPT4Tools).