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#state-reward-design News & Analysis

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AI × CryptoBullisharXiv – CS AI · 18h ago6/10
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GIFT: LLM-Guided State-Reward Interface for Financial Reinforcement Learning

Researchers introduce GIFT, an LLM-guided framework that enhances reinforcement learning for portfolio trading by using language models to design better state features and reward signals rather than making trading decisions directly. The approach combines factor-guided state enhancement, risk-rule-guided reward shaping, and diagnostic refinement to improve out-of-sample portfolio performance across diverse market conditions.