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[CS.AI] Beyond Forecasting: The Belief-to-Trade Layer in Prediction-Market Agents

Published at: 2026-07-07 22:00 Last updated: 2026-07-09 03:23
#algorithm #AI #Machine Learning

Abstract

Forecasting future events has attracted growing attention as a testbed for general-purpose AI. A natural way to ground this evaluation is to let the models trade in the prediction markets. Trading, however, requires more than forecasting. Moreover, recent benchmarks report a substantial gap between calibrated probability scores and the trading results.

We propose Raven-Agent, to the best of our knowledge, the first autonomous trading agent for prediction markets. On a controlled replay over an archived decision set, our architecture achieves the only positive return and the only positive risk-adjusted return among all tested policies. We have released our code at GitHub.

Blogger's Review: This research highlights the importance of integrating predictive models with trading capabilities. The successful implementation of Raven-Agent offers new insights for future autonomous trading systems, pushing the boundaries of AI in practical applications.

Original Source: https://arxiv.org/abs/2607.03015

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