Idea Ripper // ArchiveCards: 1555 [Live] | Updated: 2026-10-14
Card #c16IR // #c16Verbatim excerpt
Production systems should separate language generation from numerical computation. Let the LLM propose hypotheses, retrieve context, or explain model outputs, but let audited numerical code compute returns, volatilities, correlations, drawdowns, and portfolio weights. A forecast report should include confidence intervals, calibration diagnostics, and explicit uncertainty. If the model cannot cite the data and computation behind a number, the number should not enter the investment process.

— Source: Large Language Models in Finance (Miquel Noguer i Alonso)

[Use when]

Use when an LLM-generated forecast, ratio, or expected return is about to enter a report, model, or trade.

[Why it matters]

Fluency around a number feels like evidence for it, but small numerical errors drive large position changes. The fix is architectural — audited code computes, the model explains — not a better prompt.

Related principles

#c19A valid evaluation must freeze not only the price history but also the prompt, retrieval store, tools, memory, model version, and…Use when reviewing or designing a backtest of an LLM-based forecasting or trading system.

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