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Very interesting idea. I'm thinking about creating an AI portfolio manager (private) that invests for the long term. Some things to watch out for: - LLMs, by
by clark-kent 2y ago
Very interesting idea. I'm thinking about creating an AI portfolio manager (private) that invests for the long term.
Some things to watch out for:
- LLMs, by default, don't follow the best practices for trading or investing. Without careful constraints, they can ignore fundamental investment best practices. This is something I learned while building https://decodeinvesting.com/chat https://decodeinvesting.com/chat.
- I see Claude bought a penny stock SMX. This could be volatile, and the price could change significantly in 24 hours before the next execution at 9:30 am.
- The LLMs are day trading on some volatile securities; while LLMs could be good at day trading, unlike humans (we will find out), this setup has the disadvantage of only trading once a day.
- EliBullockPapa 2y agoI would be very cautious about doing this with money you actually need. Even the best performing human day traders underperform the indexes over long time horizons. Why would a robot be better? from a study in Brazil: "97% of all individuals who persisted for more than 300 days lost money. Only 1.1% earned more than the Brazilian minimum wage and only 0.5% earned more than the initial salary of a bank teller — all with great risk." https://papers.ssrn.com/sol3/papers.cfm?abstract_id=3423101 https://papers.ssrn.com/sol3/papers.cfm?abstract_id=3423101 If you don't want your bot to be a day trader, then just get low cost index funds.