Lineage-Aware Search Control for LLM-Based Evolutionary Factor Mining

Xintong Liu, Chenkai Zhang, Yanzhao Ma, Peng Yang

Formulaic alpha factor mining searches for symbolic expressions that transform market data into predictive signals. Recent LLM-based evolutionary factor mining methods use large language models as semantic variation operators. Under the conventional LLM-EA paradigm, stochastic variation and fitness-based selection can leave the search weakly directed and concentrated around a narrow set of structurally similar factors. We argue that these limitations arise because current methods mainly organize search at the individual and population levels, leaving lineage-level control underused. A lineage connects successive factor variants through evolutionary descent. We propose LineageEvo, which uses lineage in two coupled forms of search control: (1) lineage-conditioned LLM variation, which distills Lineage-Scoped Search Experience into operator-specific priors and fuses them with global operator priors, providing persistent, lineage-relevant guidance for LLM generation; and (2) lineage-stratified search allocation, which balances factor quality against lineage concentration by distributing the search budget across lineages during evolutionary search. Together, these mechanisms make…