by Chang Liu, Chao Wang, Fengbin Zhu, Fuli Feng, Guohao Qi, Huanbo Luan, Ke-Wei Huang, Kelvin J. L. Koa, Tat-Seng Chua, Wenjie Wang, Xiang Yao Ng, Xiangmin Xu, Xiangyu Li, Xiaofen Xing, Xingyu Ni, Xuan Yao, Yang Zhang, Yonghui Yang, Ziyang Liu
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Suggested foundations for financial time series and text and language models in finance. Specialist prerequisites vary by paper.
Check whether a relationship can be estimated consistently over time.
Read the fitted relationship and its residuals.
Understand how text is converted into numerical inputs.
Check whether labels measure the financial construct of interest.
Study long-run relationships without confusing them with correlation.
Check the assumptions behind reported estimates.
Test whether a text-derived signal survives an honest financial evaluation.
Choose a reproducible strategy, specify the trading rule, and test what remains after costs and estimation uncertainty.