Rachel Gonsalves

Minghan Li, Rachel Gonsalves, Weiyue Li et al. · harvard

Large language models (LLMs) are increasingly deployed as autonomous agents in financial trading. However, they often exhibit a hazardous behavioral bias that we term uniform trust, whereby retrieved information is implicitly assumed to be factual and heterogeneous sources are treated as equally informative. This assumption stands in sharp contrast to human decision-making, which relies on selective filtering, cross-validation, and experience-driven weighting of information sources. As a result, LLM-based trading systems are particularly vulnerable to multi-source noise and misinformation, amplifying factual hallucinations and leading to unstable risk-return performance. To bridge this behavioral gap, we introduce TrustTrade (Trust-Rectified Unified Selective Trader), a multi-agent selective consensus framework inspired by human epistemic heuristics. TrustTrade replaces uniform trust with cross-agent consistency by aggregating information from multiple independent LLM agents and dynamically weighting signals based on their semantic and numerical agreement. Consistent signals are prioritized, while divergent, weakly grounded, or temporally inconsistent inputs are selectively discounted. To further stabilize decision-making, TrustTrade incorporates deterministic temporal signals as reproducible anchors and a reflective memory mechanism that adapts risk preferences at test time without additional training. Together, these components suppress noise amplification and hallucination-driven volatility, yielding more stable and risk-aware trading behavior. Across controlled backtesting in high-noise market environments (2024 Q1 and 2026 Q1), the proposed TrustTrade calibrates LLM trading behavior from extreme risk-return regimes toward a human-aligned, mid-risk and mid-return profile.

Minda Zhao, Yutong Yang, Chufei Peng et al.

Emotional tone is pervasive in human communication, yet its influence on large language model (LLM) behaviour remains unclear. Here, we examine how first-person emotional framing in user-side queries affect LLM performance across six benchmark domains, including mathematical reasoning, medical question answering, reading comprehension, commonsense reasoning and social inference. Across models and tasks, static emotional prefixes usually produce only small changes in accuracy, suggesting that affective phrasing is typically a mild perturbation rather than a reliable general-purpose intervention. This stability is not uniform: effects are more variable in socially grounded tasks, where emotional context more plausibly interacts with interpersonal reasoning. Additional analyses show that stronger emotional wording induces only modest extra change, and that human-written prefixes reproduce the same qualitative pattern as LLM-generated ones. We then introduce EmotionRL, an adaptive emotional prompting framework that selects emotional framing adaptively for each query. Although no single emotion is consistently beneficial, adaptive selection yields more reliable gains than fixed emotional prompting. Together, these findings show that emotional tone is neither a dominant driver of LLM performance nor irrelevant noise, but a weak and input-dependent signal that can be exploited through adaptive control.