LLM-Gated FinRL: Point-in-Time Risk Auditing for Reinforcement Learning in High-Beta Portfolio Trading
News sentiment and text signals over 2018–2021, studied by Essono in 2026 with a large language model. The abstract mentions a Sharpe ratio, profits and drawdowns but not a benchmark, an out-of-sample test, transaction costs, multiple testing or the size of the universe.
“The gated configuration achieves a cumulative return of-48.5% compared to-53.0% for the PPO baseline, reduces maximum drawdown from-57.3% to-53.4%, and improves the Sharpe ratio from-1.06 to-0.99.”
StrategyNews sentimentmachine learning
TechniqueLarge language modelreinforcement learning
Sample window2018–2021
ClaimSharpe ratioprofit
Also stated: Text and news
Missing from abstract: benchmark, out-of-sample test, costs, multiple testing, universe
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The paper's neighbourhoodNews sentiment and text signals by year
FamilyNews sentiment and text signals148Momentum and trend following289Factor investing240Machine learning return prediction15318 more · 854
AssetEquities97
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