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Explainable AI

LLMFactor: Extracting Profitable Factors through Prompts for Explainable Stock Movement Prediction

Meiyun Wang, Kiyoshi Izumi, Hiroki Sakaji · 2024

What this means for traders

LLMs can extract the specific factors driving a stock move and explain why — not just output a signal.

Abstract

Introduces LLMFactor, a novel framework employing Sequential Knowledge-Guided Prompting (SKGP) to identify factors influencing stock movements using LLMs. Extracts factors more directly related to stock market dynamics, providing clear explanations for complex temporal changes.

Factor ExtractionStock PredictionExplainable AISequential Prompting
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