/ Paper arXiv 2611.06808
In short
In shortReport a mistake
Key numbers
From the paperCopied from the abstract, not written by AI.
Abstract
From the paperThe authors' own words.
Financial backtests of large language models (LLMs) are meaningful only if the model did not already know the outcomes it is asked to predict. Practitioners guard against this by trusting a vendor's stated knowledge cutoff, by asking the model what it knows, or by instructing it to answer as of a past date. To verify whether any of these safeguards can be trusted, we introduce FinDendro, a benchmark of 2,226 dated U.S. facts from 1999 to 2026, covering monthly macroeconomic series, month-end stock prices and Federal Reserve decisions. Each fact yields four prompts: a value question, Recall and Predict questions that pair each candidate value with a claim of knowing or guessing without a declared date, and a Predict question with a historical declared date. Controls for persistence and dominant outcomes keep chance accuracy near 0.27. Results show that for most frontier models, self-reports understate knowledge. GPT-5 answers 76% of controlled facts correctly but claims to know 38%, and answers 61% of the facts it says it does not know. Knowledge claims can persist beyond the measured knowledge boundary, by up to seven quarters, and a declared date removes most of the claims of prior knowledge while leaving accuracy unchanged. Backtests inside a model's training window therefore cannot be certified leak-free by self-report, instruction or stated cutoff. These findings motivate behavioral measurement of temporal knowledge boundaries, and FinDendro provides a benchmark and procedure for selecting backtest periods based on demonstrated factual knowledge.
From the full paper
From the paperCopied from the paper itself by our code.
Reading the paper on arXiv…
Try it
Code, models and demos that use this paper.
- Demos:
- TheFinAI/FinDendro ↗2 demos on Hugging Face
Ask this paper
/ Ask a questionAnswers come from the full paper and name the section
/ Your notes
Select text in the abstract to highlight it or add a note. They stay in this browser.