
EvolveTrade: Experience-Driven Policy Refinement for Self-Evolving LLM Trading Agents
The method replaces static hand-written system prompts governing tool use with a prompt-as-policy that a separate Policy Agent revises after each interval using decision traces and realized feedback, while the backbone LLM stays frozen. Cost is modest and infrastructure-compatible: extra LLM calls for trace review and policy rewriting, trace storage, and a more complex deployment loop with versioned prompts. Failure modes include overfitting the policy to recent market regimes or noisy backtests, reward hacking where the policy inflates simulated metrics without real edge, compounding prompt drift that degrades stability, and the risk that reported gains do not survive transaction costs, slippage, or out-of-sample live trading.































