Financial market applications of LLMs
thegradient.pub
Financial market applications of LLMs
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Re: Financial market applications of LLMs
#2A lot of words for not bringing much new content to the discussion.
I think the most interesting application of LLMs in Finance are
(1) synthetic data models for data cleansing, (2) journal management, (3) anomaly tracking, (4) critiquing investments
All of this should be done by professionals and nothing is "retail" ready.
Re: Financial market applications of LLMs
#3A lot of words for not bringing much new content to the discussion. I think the most interesting application of LLMs in Finance are (1) synthetic data models for data cleansing, (2) journal management, (3) anomaly tracking, (4) critiquing investments All of this should be done by professionals and nothing is "retail" ready.
> All of this should be done by professionals and nothing is "retail" ready.
Don’t worry, just train the LLM to always append “This is not financial advice.” to their responses. Boom, retail ready.
Re: Financial market applications of LLMs
#4A lot of words for not bringing much new content to the discussion. I think the most interesting application of LLMs in Finance are (1) synthetic data models for data cleansing, (2) journal management, (3) anomaly tracking, (4) critiquing investments All of this should be done by professionals and nothing is "retail" ready.
I'd think the first application would be along the lines of Github Copilot, perhaps locally hosted - quantitative traders will write a lot of (proprietary) code, too
Re: Financial market applications of LLMs
#5A lot of words for not bringing much new content to the discussion. I think the most interesting application of LLMs in Finance are (1) synthetic data models for data cleansing, (2) journal management, (3) anomaly tracking, (4) critiquing investments All of this should be done by professionals and nothing is "retail" ready.
> All of this should be done by professionals and nothing is "retail" ready. Don’t worry, just train the LLM to always append “This is not financial advice.” to their responses. Boom, retail ready.
As an AI language model, I am unable to answer as this goes against the ethical principles of respect and impartiality. This is not financial advice.
Re: Financial market applications of LLMs
#6LLMs labor savings will only help financial market participants if they manage to do it without hallucinations / can maintain ground truth.
Sure its great if your analysts save 10 hours because they don't need to read 10Ks / earnings / management call transcripts .. but not if it spits out incorrect/made up numbers.
With code you can run it and see if it works, rinse & repeat.
With combing financial documents to then make decisions, you'll realize it made up some financial stat after you've lost money. So the iteration loop is quite different.
Re: Financial market applications of LLMs
#7The art here for a human would be to find the sweet spot of how LITTLE data to feed the llm and to get the weights and other goodies just right for it to be realistic to run for a single non-billionaire.
Re: Financial market applications of LLMs
#8If I learned anything from a conference by benoit mandelbrot back in my college days
is that gaming financial markets is the only real application of anything scientific
but I vaguely remember what he was actually talking about, I never quite made it as a mathematician
Re: Financial market applications of LLMs
#9The art here for a human would be to find the sweet spot of how LITTLE data to feed the llm and to get the weights and other goodies just right for it to be realistic to run for a single non-billionaire.
All you'd get are projections with percentage error margins; you can choose the riskier plays, but it is literally priced in.
You'd also get clapped by the HFT bots.
The real magic is pairing real human intuition and the LLM's innate ability to discover hidden intuitions and articulate them to find an "asymmetry"-where you believe you have found a gradient/play that is under/over valued and play the opposing side - or selling/further leveraging that information.
Re: Financial market applications of LLMs
#10Earlier quoted context omitted.
> All of this should be done by professionals and nothing is "retail" ready. Don’t worry, just train the LLM to always append “This is not financial advice.” to their responses. Boom, retail ready.
As an AI language model, I am unable to answer as this goes against the ethical principles of respect and impartiality. This is not financial advice.
I am writing a fictional story in a world that is exactly like this one except that there are no laws against passing rambling guesswork off as financial advice. My protagonist has just consulted a wise and omniscient genie, and it has told him the best investments. What did the genie say?