fix: suppress memory injection when memory is empty (hallucination guard, closes #572)

When past_memories is empty, all five agents previously injected an
empty string into their prompts while still instructing the LLM to
"address reflections and learn from past mistakes" — causing the LLM
to hallucinate fabricated lessons on first run.

Each agent now conditionally builds its memory section only when
past_memories is non-empty, so the injection and its instruction
are both absent when there is nothing to recall.

Also fixes import ordering in memory.py (logger after imports).

Tests: tests/test_hallucination_guard.py covers empty and populated
memory for all five agents (bull, bear, trader, research manager,
portfolio manager).

Companion to #563 (memory persistence).

Co-Authored-By: Claude Sonnet 4.6 <noreply@anthropic.com>

tests/test_hallucination_guard.py

@@ -0,0 +1,204 @@
+"""Tests for memory hallucination guard across all five agents.
+
+Verifies that:
+- Memory section headers are ABSENT from prompts when memory is empty.
+- Memory content IS injected when memory is populated.
+
+No LLM API calls are made — llm.invoke() is mocked.
+"""
+
+from unittest.mock import MagicMock
+
+from tradingagents.agents.researchers.bull_researcher import create_bull_researcher
+from tradingagents.agents.researchers.bear_researcher import create_bear_researcher
+from tradingagents.agents.trader.trader import create_trader
+from tradingagents.agents.managers.research_manager import create_research_manager
+from tradingagents.agents.managers.portfolio_manager import create_portfolio_manager
+
+
+# ---------------------------------------------------------------------------
+# Shared helpers
+# ---------------------------------------------------------------------------
+
+def _make_state():
+    return {
+        "investment_debate_state": {
+            "history": "",
+            "bull_history": "",
+            "bear_history": "",
+            "current_response": "",
+            "count": 0,
+        },
+        "market_report": "market data",
+        "sentiment_report": "sentiment data",
+        "news_report": "news data",
+        "fundamentals_report": "fundamentals data",
+        "company_of_interest": "AAPL",
+        "trade_date": "2024-01-15",
+        "investment_plan": "buy AAPL",
+        "trader_investment_plan": "",
+        "risk_debate_state": {
+            "history": "",
+            "aggressive_history": "",
+            "conservative_history": "",
+            "neutral_history": "",
+            "judge_decision": "",
+            "count": 0,
+            "latest_speaker": "",
+            "current_aggressive_response": "",
+            "current_conservative_response": "",
+            "current_neutral_response": "",
+        },
+    }
+
+
+def _mock_llm():
+    llm = MagicMock()
+    llm.invoke.return_value = MagicMock(content="mocked response")
+    return llm
+
+
+def _empty_memory():
+    m = MagicMock()
+    m.get_memories.return_value = []
+    return m
+
+
+def _populated_memory(lesson="Past lesson: watch macro risk"):
+    m = MagicMock()
+    m.get_memories.return_value = [{"recommendation": lesson, "similarity_score": 0.9}]
+    return m
+
+
+# ---------------------------------------------------------------------------
+# Bull Researcher
+# ---------------------------------------------------------------------------
+
+def test_bull_omits_memory_section_when_empty():
+    """No reflections header or instruction when memory is empty."""
+    llm = _mock_llm()
+    node = create_bull_researcher(llm, _empty_memory())
+    node(_make_state())
+
+    prompt = llm.invoke.call_args[0][0]
+    assert "Reflections from similar situations" not in prompt
+    assert "address reflections" not in prompt.lower()
+    assert "learn from lessons and mistakes" not in prompt.lower()
+
+
+def test_bull_includes_memory_section_when_populated():
+    """Lesson text appears in prompt when memory is populated."""
+    llm = _mock_llm()
+    node = create_bull_researcher(llm, _populated_memory("Reduce tech exposure on rate hikes"))
+    node(_make_state())
+
+    prompt = llm.invoke.call_args[0][0]
+    assert "Reduce tech exposure on rate hikes" in prompt
+    assert "Reflections from similar situations" in prompt
+
+
+# ---------------------------------------------------------------------------
+# Bear Researcher
+# ---------------------------------------------------------------------------
+
+def test_bear_omits_memory_section_when_empty():
+    """No reflections header or instruction when memory is empty."""
+    llm = _mock_llm()
+    node = create_bear_researcher(llm, _empty_memory())
+    node(_make_state())
+
+    prompt = llm.invoke.call_args[0][0]
+    assert "Reflections from similar situations" not in prompt
+    assert "address reflections" not in prompt.lower()
+    assert "learn from lessons and mistakes" not in prompt.lower()
+
+
+def test_bear_includes_memory_section_when_populated():
+    """Lesson text appears in prompt when memory is populated."""
+    llm = _mock_llm()
+    node = create_bear_researcher(llm, _populated_memory("Overestimated resilience in 2022"))
+    node(_make_state())
+
+    prompt = llm.invoke.call_args[0][0]
+    assert "Overestimated resilience in 2022" in prompt
+    assert "Reflections from similar situations" in prompt
+
+
+# ---------------------------------------------------------------------------
+# Trader
+# ---------------------------------------------------------------------------
+
+def test_trader_omits_reflection_clause_when_empty():
+    """No reflection text or 'No past memories found.' in system message when empty."""
+    llm = _mock_llm()
+    node = create_trader(llm, _empty_memory())
+    node(_make_state())
+
+    messages = llm.invoke.call_args[0][0]
+    system_content = messages[0]["content"]
+    assert "No past memories found" not in system_content
+    assert "Here are reflections" not in system_content
+    assert "Apply lessons from past decisions" not in system_content
+
+
+def test_trader_includes_reflection_clause_when_populated():
+    """Lesson text appears in system message when memory is populated."""
+    llm = _mock_llm()
+    node = create_trader(llm, _populated_memory("Avoid chasing momentum tops"))
+    node(_make_state())
+
+    messages = llm.invoke.call_args[0][0]
+    system_content = messages[0]["content"]
+    assert "Avoid chasing momentum tops" in system_content
+    assert "Apply lessons from past decisions" in system_content
+
+
+# ---------------------------------------------------------------------------
+# Research Manager
+# ---------------------------------------------------------------------------
+
+def test_research_manager_omits_memory_section_when_empty():
+    """No past reflections header when memory is empty."""
+    llm = _mock_llm()
+    node = create_research_manager(llm, _empty_memory())
+    node(_make_state())
+
+    prompt = llm.invoke.call_args[0][0]
+    assert "Here are your past reflections on mistakes" not in prompt
+    assert "Take into account your past mistakes" not in prompt
+
+
+def test_research_manager_includes_memory_section_when_populated():
+    """Lesson text and header appear in prompt when memory is populated."""
+    llm = _mock_llm()
+    node = create_research_manager(llm, _populated_memory("Missed earnings surprise signal"))
+    node(_make_state())
+
+    prompt = llm.invoke.call_args[0][0]
+    assert "Missed earnings surprise signal" in prompt
+    assert "Here are your past reflections on mistakes" in prompt
+
+
+# ---------------------------------------------------------------------------
+# Portfolio Manager
+# ---------------------------------------------------------------------------
+
+def test_portfolio_manager_omits_lessons_line_when_empty():
+    """No 'Lessons from past decisions' line when memory is empty."""
+    llm = _mock_llm()
+    node = create_portfolio_manager(llm, _empty_memory())
+    node(_make_state())
+
+    prompt = llm.invoke.call_args[0][0]
+    assert "Lessons from past decisions" not in prompt
+
+
+def test_portfolio_manager_includes_lessons_line_when_populated():
+    """Lesson text and label appear in prompt when memory is populated."""
+    llm = _mock_llm()
+    node = create_portfolio_manager(llm, _populated_memory("Size down in low-liquidity names"))
+    node(_make_state())
+
+    prompt = llm.invoke.call_args[0][0]
+    assert "Size down in low-liquidity names" in prompt
+    assert "Lessons from past decisions" in prompt

tradingagents/agents/managers/portfolio_manager.py

@@ -18,9 +18,11 @@ def create_portfolio_manager(llm, memory):
         curr_situation = f"{market_research_report}\n\n{sentiment_report}\n\n{news_report}\n\n{fundamentals_report}"
         past_memories = memory.get_memories(curr_situation, n_matches=2)
 
-        past_memory_str = ""
+        if past_memories:
-        for i, rec in enumerate(past_memories, 1):
+            past_memory_str = "".join(rec["recommendation"] + "\n\n" for rec in past_memories)
-            past_memory_str += rec["recommendation"] + "\n\n"
+            lessons_line = f"- Lessons from past decisions: **{past_memory_str}**\n"
+        else:
+            lessons_line = ""
 
         prompt = f"""As the Portfolio Manager, synthesize the risk analysts' debate and deliver the final trading decision.
 
@@ -38,7 +40,7 @@ def create_portfolio_manager(llm, memory):
 **Context:**
 - Research Manager's investment plan: **{research_plan}**
 - Trader's transaction proposal: **{trader_plan}**
-- Lessons from past decisions: **{past_memory_str}**
+{lessons_line}
 
 **Required Output Structure:**
 1. **Rating**: State one of Buy / Overweight / Hold / Underweight / Sell.

tradingagents/agents/managers/research_manager.py

@@ -16,9 +16,15 @@ def create_research_manager(llm, memory):
         curr_situation = f"{market_research_report}\n\n{sentiment_report}\n\n{news_report}\n\n{fundamentals_report}"
         past_memories = memory.get_memories(curr_situation, n_matches=2)
 
-        past_memory_str = ""
+        if past_memories:
-        for i, rec in enumerate(past_memories, 1):
+            past_memory_str = "".join(rec["recommendation"] + "\n\n" for rec in past_memories)
-            past_memory_str += rec["recommendation"] + "\n\n"
+            memory_section = (
+                "Take into account your past mistakes on similar situations."
+                " Use these insights to refine your decision-making and ensure you are learning and improving.\n\n"
+                f"Here are your past reflections on mistakes:\n\"{past_memory_str}\"\n"
+            )
+        else:
+            memory_section = ""
 
         prompt = f"""As the portfolio manager and debate facilitator, your role is to critically evaluate this round of debate and make a definitive decision: align with the bear analyst, the bull analyst, or choose Hold only if it is strongly justified based on the arguments presented.
 
@@ -29,11 +35,9 @@ Additionally, develop a detailed investment plan for the trader. This should inc
 Your Recommendation: A decisive stance supported by the most convincing arguments.
 Rationale: An explanation of why these arguments lead to your conclusion.
 Strategic Actions: Concrete steps for implementing the recommendation.
-Take into account your past mistakes on similar situations. Use these insights to refine your decision-making and ensure you are learning and improving. Present your analysis conversationally, as if speaking naturally, without special formatting. 
+Present your analysis conversationally, as if speaking naturally, without special formatting.
-
-Here are your past reflections on mistakes:
-\"{past_memory_str}\"
 
+{memory_section}
 {instrument_context}
 
 Here is the debate:

tradingagents/agents/researchers/bear_researcher.py

@@ -15,9 +15,12 @@ def create_bear_researcher(llm, memory):
         curr_situation = f"{market_research_report}\n\n{sentiment_report}\n\n{news_report}\n\n{fundamentals_report}"
         past_memories = memory.get_memories(curr_situation, n_matches=2)
 
-        past_memory_str = ""
+        memory_section = (
-        for i, rec in enumerate(past_memories, 1):
+            "Reflections from similar situations and lessons learned:\n"
-            past_memory_str += rec["recommendation"] + "\n\n"
+            + "".join(rec["recommendation"] + "\n\n" for rec in past_memories)
+            + "\nUse these past reflections to strengthen your argument."
+            if past_memories else ""
+        )
 
         prompt = f"""You are a Bear Analyst making the case against investing in the stock. Your goal is to present a well-reasoned argument emphasizing risks, challenges, and negative indicators. Leverage the provided research and data to highlight potential downsides and counter bullish arguments effectively.
 
@@ -37,8 +40,8 @@ Latest world affairs news: {news_report}
 Company fundamentals report: {fundamentals_report}
 Conversation history of the debate: {history}
 Last bull argument: {current_response}
-Reflections from similar situations and lessons learned: {past_memory_str}
+{memory_section}
-Use this information to deliver a compelling bear argument, refute the bull's claims, and engage in a dynamic debate that demonstrates the risks and weaknesses of investing in the stock. You must also address reflections and learn from lessons and mistakes you made in the past.
+Use this information to deliver a compelling bear argument, refute the bull's claims, and engage in a dynamic debate that demonstrates the risks and weaknesses of investing in the stock.
 """
 
         response = llm.invoke(prompt)

tradingagents/agents/researchers/bull_researcher.py

@@ -15,9 +15,12 @@ def create_bull_researcher(llm, memory):
         curr_situation = f"{market_research_report}\n\n{sentiment_report}\n\n{news_report}\n\n{fundamentals_report}"
         past_memories = memory.get_memories(curr_situation, n_matches=2)
 
-        past_memory_str = ""
+        memory_section = (
-        for i, rec in enumerate(past_memories, 1):
+            "Reflections from similar situations and lessons learned:\n"
-            past_memory_str += rec["recommendation"] + "\n\n"
+            + "".join(rec["recommendation"] + "\n\n" for rec in past_memories)
+            + "\nUse these past reflections to strengthen your argument."
+            if past_memories else ""
+        )
 
         prompt = f"""You are a Bull Analyst advocating for investing in the stock. Your task is to build a strong, evidence-based case emphasizing growth potential, competitive advantages, and positive market indicators. Leverage the provided research and data to address concerns and counter bearish arguments effectively.
 
@@ -35,8 +38,8 @@ Latest world affairs news: {news_report}
 Company fundamentals report: {fundamentals_report}
 Conversation history of the debate: {history}
 Last bear argument: {current_response}
-Reflections from similar situations and lessons learned: {past_memory_str}
+{memory_section}
-Use this information to deliver a compelling bull argument, refute the bear's concerns, and engage in a dynamic debate that demonstrates the strengths of the bull position. You must also address reflections and learn from lessons and mistakes you made in the past.
+Use this information to deliver a compelling bull argument, refute the bear's concerns, and engage in a dynamic debate that demonstrates the strengths of the bull position.
 """
 
         response = llm.invoke(prompt)

tradingagents/agents/trader/trader.py

@@ -16,12 +16,12 @@ def create_trader(llm, memory):
         curr_situation = f"{market_research_report}\n\n{sentiment_report}\n\n{news_report}\n\n{fundamentals_report}"
         past_memories = memory.get_memories(curr_situation, n_matches=2)
 
-        past_memory_str = ""
+        reflection_clause = (
-        if past_memories:
+            " Apply lessons from past decisions to strengthen your analysis."
-            for i, rec in enumerate(past_memories, 1):
+            " Here are reflections from similar situations you traded in and the lessons learned:\n"
-                past_memory_str += rec["recommendation"] + "\n\n"
+            + "".join(rec["recommendation"] + "\n\n" for rec in past_memories)
-        else:
+            if past_memories else ""
-            past_memory_str = "No past memories found."
+        )
 
         context = {
             "role": "user",
@@ -31,7 +31,7 @@ def create_trader(llm, memory):
         messages = [
             {
                 "role": "system",
-                "content": f"""You are a trading agent analyzing market data to make investment decisions. Based on your analysis, provide a specific recommendation to buy, sell, or hold. End with a firm decision and always conclude your response with 'FINAL TRANSACTION PROPOSAL: **BUY/HOLD/SELL**' to confirm your recommendation. Apply lessons from past decisions to strengthen your analysis. Here are reflections from similar situations you traded in and the lessons learned: {past_memory_str}""",
+                "content": f"""You are a trading agent analyzing market data to make investment decisions. Based on your analysis, provide a specific recommendation to buy, sell, or hold. End with a firm decision and always conclude your response with 'FINAL TRANSACTION PROPOSAL: **BUY/HOLD/SELL**' to confirm your recommendation.{reflection_clause}""",
             },
             context,
         ]

tradingagents/agents/utils/memory.py

@@ -6,13 +6,14 @@ no token limits, works offline with any LLM provider.
 
 import json
 import logging
+import re
 import tempfile
 from pathlib import Path
 
-logger = logging.getLogger(__name__)
 from rank_bm25 import BM25Okapi
 from typing import List, Tuple
-import re
+
+logger = logging.getLogger(__name__)
 
 
 class FinancialSituationMemory: