Representation Signatures and Risk-Feedback Alignment in LLM Trading Agents

arXiv:2605.28850v1 Announce Type: new Abstract: We study behavioral alignment and representation dynamics of large language model (LLM) agents in financial decision environments. Using TradeArena, an auditable trading-agent testbed with risk reports, execution simulation, memory, and replayable trajectories, we analyze how rationales, positions, and interventions evolve under market stress. We find measurable pre-failure signatures: planning embeddings drift from normal-state centroids, fused p