Did you ever use AI or chatGPT for trading?!

[stochastix]

yes i use it to develop my rough fractal volatility pricer

 

[HeSaidSheSaid]

we used to have a football pool in our office, and one of the participants used Alexa to give him the pick (his winning was quite good). I think Alexa algo scoured the web for info on player availability, injuries, home/and away statistics, ... that's why his calls were relatively good.

for chatGPT, it'd come down to data quality or integrity, from whom it gets the market information from, sooner or later, people would manipulate the innocent bot to feed it with false information, then that would create different perception of the reality, then if anyone falls for it hook, line and sinker, he would be screwed .

 

[Drawdown Addict]

For me it was useful to ask for an algorithm to generate Montecarlo simulations and Log-normal distributions.
I had one already for my backtesting, the information is already there on the web, but seeing the code generated by ChatGPT was useful to use the right library. They prefer Python for everything, which is a shame, but with a bit a code analysis I was able to write it in a proper language.

I don't think anyone could use it to generate signals to trade but it is useful to prepare tools around it.

 

[Hannie]

Nah, I use EA for trading and it can bring you ease

 

[kroxobor]

Hi,


did you ever use AI or chatGPT (neural networks) for trading?!


If so, what have you done,
did you have any positive outcome of it
(or merely neutral / negative),

and what would you recommend?!


Thanks and cheers.

I build market making bot (got some nice ideas from it) for my niche market. If before trading required knowledge and creativity, now I can say it requires only creativity and strong common sense as formulating your request precisely enough (and conducting some training) you get pretty good results. Just don't forget it just a tool.

 

[bitcuration]

Can ChatGPT Forecast Stock Price Movements? Return Predictability and Large Language Models
https://papers.ssrn.com/sol3/papers.cfm?abstract_id=4412788

 

[ironchef]

Can ChatGPT Forecast Stock Price Movements? Return Predictability and Large Language Models
https://papers.ssrn.com/sol3/papers.cfm?abstract_id=4412788

Thanks for the paper. It actually said yes!

I asked chatGPT to pick stock and it gave me a non specific generic answer.

 

[Sprout]

Thanks for the paper. It actually said yes!

I asked chatGPT to pick stock and it gave me a non specific generic answer.

What was your prompt?

 

[SunTrader]

I read about it, some even 100%, but only with bars prior to 2021

I can't find bars anymore. There used to be one on every street corner.

 

[ironchef]

What was your prompt?

Me: Pick the best small cap tech stock for me to buy

chatGPT
I'm not able to provide real-time stock recommendations as my knowledge only goes up until September 2021, and I cannot browse the internet for current information. Additionally, investing in stocks carries risks, and what might be a good investment can change rapidly based on market conditions and the specific goals and risk tolerance of the investor.

To make informed investment decisions, especially in small-cap tech stocks, it's important to do your own research and consider the following:

1. Market Research: Look into the current trends and dynamics of the tech industry. Understand the competitive landscape and growth prospects.
   
   
2. Financials: Examine the financial health of the company, including revenue, earnings, and cash flow. Look for companies with a strong balance sheet and a history of profitability or a clear path to profitability.
   
   
3. Management Team: Research the company's leadership team. Strong, experienced management can be a positive sign.
   
   
4. Competitive Advantage: What sets the company apart from its competitors? Does it have unique technology or a strong brand?
   
   
5. Growth Potential: Consider the company's growth prospects. Is it entering new markets or launching innovative products/services?
   
   
6. Valuation: Evaluate the stock's valuation. Is it overvalued or undervalued compared to its peers?
   
   
7. Risks: Assess the potential risks associated with the investment, including market volatility, industry-specific risks, and company-specific risks.
   
   
8. Diversification: Ensure that your investment portfolio is diversified to spread risk. Don't put all your money into a single stock.
   
   
9. Long-Term vs. Short-Term: Determine your investment horizon. Are you looking for short-term gains or a long-term investment?
   
   
10. Consult a Financial Advisor: It's often a good idea to consult with a financial advisor or professional who can provide personalized advice based on your financial situation and goals.

Remember that investing in small-cap stocks, especially in the tech sector, can be highly volatile and risky. It's essential to have a well-thought-out investment strategy and be prepared for the possibility of losing some or all of your investment. Always do your due diligence and consider your own risk tolerance before making any investment decisions.

But I can't complain. It is free.