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FactorMiner: A Self-Evolving Agent with Skills and Experience Memory for Financial Alpha Discovery

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Listed:
  • Yanlong Wang
  • Jian Xu
  • Hongkang Zhang
  • Shao-Lun Huang
  • Danny Dongning Sun
  • Xiao-Ping Zhang

Abstract

Formulaic alpha factor mining is a critical yet challenging task in quantitative investment, characterized by a vast search space and the need for domain-informed, interpretable signals. However, finding novel signals becomes increasingly difficult as the library grows due to high redundancy. We propose FactorMiner, a lightweight and flexible self-evolving agent framework designed to navigate this complex landscape through continuous knowledge accumulation. FactorMiner combines a Modular Skill Architecture that encapsulates systematic financial evaluation into executable tools with a structured Experience Memory that distills historical mining trials into actionable insights (successful patterns and failure constraints). By instantiating the Ralph Loop paradigm -- retrieve, generate, evaluate, and distill -- FactorMiner iteratively uses memory priors to guide exploration, reducing redundant search while focusing on promising directions. Experiments on multiple datasets across different assets and Markets show that FactorMiner constructs a diverse library of high-quality factors with competitive performance, while maintaining low redundancy among factors as the library scales. Overall, FactorMiner provides a practical approach to scalable discovery of interpretable formulaic alpha factors under the "Correlation Red Sea" constraint.

Suggested Citation

  • Yanlong Wang & Jian Xu & Hongkang Zhang & Shao-Lun Huang & Danny Dongning Sun & Xiao-Ping Zhang, 2026. "FactorMiner: A Self-Evolving Agent with Skills and Experience Memory for Financial Alpha Discovery," Papers 2602.14670, arXiv.org.
  • Handle: RePEc:arx:papers:2602.14670
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    References listed on IDEAS

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