The Hidden Cost of Chain of Thought in Trading Systems
Chain of Thought (CoT) has emerged as a popular approach in the AI world, allowing models to "think through" problems step-by-step before providing answers. This methodology has shown impressive results across many domains - from solving math problems to dissecting complex reasoning tasks. However, our team discovered a painful truth when implementing CoT in quantitative trading systems: what works for general reasoning can actively undermine performance in highly specialized technical domains.
