I'm trying to see how this could be net positive.
it's a net positive for robinhood, not the trader necessarily
Robinhood now lets your AI agents trade stocks
131–140 of 192 posts
Re: Robinhood now lets your AI agents trade stocks
#132I 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.
As much as I hate the idea of enabling the desperate masses to gamble like this, LLMs are very aligned tools for sentiment analysis, which can be the foundation of a trading strategy. I think it's extremely irresponsible to use them for execution, though.
Sentiment analysis has been done programmatically for at least 2-3 decades. Retail using an LLM will have no impact.
Re: Robinhood now lets your AI agents trade stocks
#133I 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.
I use the Interactive Brokers MCP pretty heavily. I don't do any cool automatic fun "trading", but instead I use it to have "pseudo-QQQ". I didn't like the relatively high fees for QQQ, and I realized that Invesco releases the weights for QQQ for free. I also think Tesla is too overvalued, and I want to avoid the SpaceX IPO. With the Interactive Brokers MCP, I just feed it the CSV of QQQ's weights, tell it to remove…
I love how you needed an LLM to remove "passive" from "passive investing".
On a more serious note, why do you need an LLM for this at all? It's an excel spreadsheet difficulty level task.
Re: Robinhood now lets your AI agents trade stocks
#134Earlier quoted context omitted.
I use the Interactive Brokers MCP pretty heavily. I don't do any cool automatic fun "trading", but instead I use it to have "pseudo-QQQ". I didn't like the relatively high fees for QQQ, and I realized that Invesco releases the weights for QQQ for free. I also think Tesla is too overvalued, and I want to avoid the SpaceX IPO. With the Interactive Brokers MCP, I just feed it the CSV of QQQ's weights, tell it to remove…
This is absolutely and unfathomably terrible to such a great degree that I think it reinforces OPs point. It seems like using an LLM has given you the confidence to make an incredibly ill-informed decision that will cost you dearly. Every single time you rebalance your portfolio, you will need to pay short-term capital gains taxes on any gains, as opposed to an ETF in which you simply pay for the gains when you sell…
If short-term capital gains taxes are the main concerns, perhaps this pseudo QQQ strategy can be done in a Roth IRA account using brokers that offer free commission?
Re: Robinhood now lets your AI agents trade stocks
#135Yo dawg, I heard you like gambling.
Re: Robinhood now lets your AI agents trade stocks
#136Earlier quoted context omitted.
I use the Interactive Brokers MCP pretty heavily. I don't do any cool automatic fun "trading", but instead I use it to have "pseudo-QQQ". I didn't like the relatively high fees for QQQ, and I realized that Invesco releases the weights for QQQ for free. I also think Tesla is too overvalued, and I want to avoid the SpaceX IPO. With the Interactive Brokers MCP, I just feed it the CSV of QQQ's weights, tell it to remove…
You don't need AI for this though. I was doing something like this with a python script and a crypto meta etf I created years ago. I even had some simple heuristics for selecting what coins and quantity to purchase given trading volume and spot price. Its like 175 lines of python. Probably could be a lot leaner too.
and then you want to track orders states, and then you want to track exit strategies - trailing stops that are sometimes internal, sometimes sent to the order book - profit targets, and then you want to track settlement statuses as balances change on margin, and how you get filled
all while dealing with different and complex broker APIs and routing to different exchanges that have their own rules and limitations
on the other hand, agents just do it and handle edge cases themselves
Re: Robinhood now lets your AI agents trade stocks
#137Cryptoscammers everywhere rubbing their hands together. There's so many ways this could go wrong. Everything from prompt injection, to being tricked in running a specific scammers setup, to which they can pump and dump specific stocks, and all sorts of other manmade horrors.
Hello $claw, i'm a Nigerian prince..
Re: Robinhood now lets your AI agents trade stocks
#138Earlier quoted context omitted.
Alpha is ultimately the result of analysis, of better analysis than others. LLM's can actually be exceptionally good at research and pattern recognition, i.e. analysis. And while they aren't great at running numbers themselves, they can do exceptional work passing off Python scripts to an interpreter to generate the numerical results they need. I'm quite sure the Robinhood AI is going to be trash, i.e. just a gimmick…
This is essentially what AlphaZero is doing: https://nof1.ai/
Heh if you look at the Sharpe Ratios of the strategies/models, they're all terrible. The best performing regime there is still a Sharpe of 0.019
Re: Robinhood now lets your AI agents trade stocks
#139I 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.
Alpha is ultimately the result of analysis, of better analysis than others. LLM's can actually be exceptionally good at research and pattern recognition, i.e. analysis. And while they aren't great at running numbers themselves, they can do exceptional work passing off Python scripts to an interpreter to generate the numerical results they need. I'm quite sure the Robinhood AI is going to be trash, i.e. just a gimmick…
> LLM's can actually be exceptionally good at research and pattern recognition, i.e. analysis.
Sure but knowing where to start research is also a problem. Just saying “do research” isn’t going to work even with volumes of public information.
Re: Robinhood now lets your AI agents trade stocks
#140Earlier quoted context omitted.
This is absolutely and unfathomably terrible to such a great degree that I think it reinforces OPs point. It seems like using an LLM has given you the confidence to make an incredibly ill-informed decision that will cost you dearly. Every single time you rebalance your portfolio, you will need to pay short-term capital gains taxes on any gains, as opposed to an ETF in which you simply pay for the gains when you sell…
If short-term capital gains taxes are the main concerns, perhaps this pseudo QQQ strategy can be done in a Roth IRA account using brokers that offer free commission?
The poster was mostly right, and I was mostly wrong, I don't like admitting that but that's just what it is.
I updated the skill I wrote to make it so that rebalancing is "buy-only", as in rebalancing will just buy shares for the underweight things instead of selling the overweight. I don't think buying is a taxable event so I don't think that's going to make me have an absurd tax burden then.
I will say that I think Maxatar was a bit misinformed about Interactive Brokers though; they've had PFOF/"commission-free" trading with their free Lite package for awhile. Of course you still pay the bid/ask spread, but if something is popular enough to be on the NASDAQ-100, the spread is usually on the order of a cent or two.