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Robinhood now lets your AI agents trade stocks

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Re: Robinhood now lets your AI agents trade stocks

#16
post #4

I don’t understand this constant fascination with having language models trade stocks. Language models are very useful tools but not aligned at all with generating alpha.

AI agents for trading, as well as 24/7 trading are no different than offering sports gambling and prediction markets to the masses; it is a vacuum for the fiat of the unsophisticated. The goal is more trading volume to generate more fees, similar story with private equity wanting access to 401ks to unload PE at peak valuations to bag holders. https://en.wikipedia.org/wiki/Parable_of_the_broken_window

well said truth

Re: Robinhood now lets your AI agents trade stocks

#17
post #4

I don’t understand this constant fascination with having language models trade stocks. Language models are very useful tools but not aligned at all with generating alpha.

The usual question: what's "aligned with generating alpha" that a human stock trader can do, but an ai can't?

That is sidestepping the point: 70-90% of retail traders lose money. The question should be: is AI trading enough of an improvement to justify its non-subsidized costs?

Re: Robinhood now lets your AI agents trade stocks

#18

I don’t understand why anybody would use LLM:s for trading (other than some narrow speed trading news)

even in that case I would have an LLM analyzing the news trigger a deterministic API call. I can't imagine the use case for this besides vibe-trading
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