AI-Driven Alpha Decay: Algorithmic Homogenization, Reflexive Signal Erosion, and the Paradox of Intelligent Markets

By Shuchen Meng, Xupeng Chen

Published 2026-05-26

Everscope rating

1238.9

Relevance to quantitative trading

10 / 10

Implementation complexity

7 / 10

Reproducibility

2 / 5

About this paper

Methodology: Three-Layer Equilibrium Model with Calibrated Simulations. Problem types: Causal Inference, Risk Management, Portfolio Optimization, Market Making, Optimization, Density Estimation.

arXiv:2605.23905 · Paper rankings

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