“The student from Oklahoma, the United States, instructed the Chatgpt control of the portfolio of $ 100 and received profitability, which significantly exceeded the stock market. About it reports Decrypt. Nathan Smith’s experiment started four weeks ago with a simple idea – to convey full control over the investments of the AI and observe the result. During this time, the portfolio profitability was 23.8%, while the Russell indexes […]”, – WRITE: Businessua.com.ua
The student from Oklahoma, the United States, instructed the Chatgpt control of the portfolio of $ 100 and received profitability, which significantly exceeded the stock market. About it reports Decrypt.
Nathan Smith’s experiment started four weeks ago with a simple idea – to convey full control over the investments of the AI and observe the result.
During this time, the profitability of the portfolio was 23.8%, while the indices of Russell 2000 and XBI increased by only 3.9% and 3.5%, respectively.
Comparison of profitability. Source: Decrypt.
“I constantly saw advertising of the II-Highway on YouTube, saying:” Our algorithm analyzes all companies on NYSE “and more. I was surprised that no one had entrusted full control over the LLM portfolio, ”Smith said.
The task was clear: to form the most effective portfolio of US companies with capitalization of less than $ 300 million. Purpose – to maximize profit from June 27 to July 27.
The algorithm worked completely autonomously.
“AI controls literally everyone-from the size of positions to stop locks. I do not interfere, ”the schoolboy explained.
Sharp ratio was 0.9413 – this indicates a high risk, while the sortino ratio was 2,0021 – good potential with controlled protrusions.
One of the most successful SI decisions was the purchase of CADL, which provided almost 50% of all profits.
“He sold Cadl without hesitation. AI seems to be correctly realized that in microcapa profit could be stopped instantly. Not every hedge fund will dare to such, ”Smith commented.
The young man created five key functions:
- manual addition/sale of new stocks;
- portfolio processing for fixing transactions;
- daily results counting through Yahoo Finance;
- construction of graphs for comparison with the S&P 500 index;
“Honestly, everything is quite simple. The system receives data through API Yahoo Finance and analyzes them with Pandas, ”he explained.
Chatgpt updates the list of shares weekly, following the capitalization limit, and Smith sells agreements manually and keeps records. He plans to continue the experiment until December.
“I seem to have found my life. I very much hope to do it with your profession, ”the student summed up.
Recall that in February 2024 institutional investors predicted more active use of AI in trading.
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