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We gave 5 LLMs $100K to trade stocks for 8 months

aitradearena.com

231–240 of 319 posts

Re: We gave 5 LLMs $100K to trade stocks for 8 months

#233

> Grok ended up performing the best while DeepSeek came close to second. Almost all the models had a tech-heavy portfolio which led them to do well. Gemini ended up in last place since it was the only one that had a large portfolio of non-tech stocks. I'm not an investor or researcher, but this triggers my spidey sense... it seems to imply they aren't measuring what they think they are.

S&P 500 is also tech heavy and notoriously difficult to beat over the long run

Re: We gave 5 LLMs $100K to trade stocks for 8 months

#236
Predicting the stock market will likely never happen because it’s recursive. We can predict the next 10 days of weather, but the weather doesn’t change because it read your forecast. As long as markets continue to react to their own reactions, they will remain unpredictable.

If the strategy is long, there might be alpha to be found. But day trading? No way.

Re: We gave 5 LLMs $100K to trade stocks for 8 months

#237

Earlier quoted context omitted.

Hedge funds suck though. They don’t invest in FAANG, they do risky stuff that doesn’t pay off, you are still comparing incomparable things. I’m obviously a genius because 90% of my stock is in tech, most of us on HN are geniuses in your opinion?

What do you think hedge funds do?

Downside protection. Hedging. Giving you gains at the lowest beta possible.

Re: We gave 5 LLMs $100K to trade stocks for 8 months

#239

Earlier quoted context omitted.

Yeah I mean if you generally believe the tech sector is going to do well because it has been doing well you will beat the overall market. The problem is that you don’t know if and when there might be a correction. But since there is this one segment of the overall market that has this steady upwards trend and it hasn’t had a large crash, then yeah any pattern seeking system will identify “hey this line keeps going up…

You believe in the tech sector because technology always goes well and it's what humans strive to achieve, not because it has done well recently. It has always.

When does the tech sector become the computer sector?

Agriculture would have been considered tech 200 years ago.

Re: We gave 5 LLMs $100K to trade stocks for 8 months

#240
post #235

What is the point of this? LLMs are trained to predict the next word in a text. In what way, shape or form does that have anything to do with stock market prediction? Completely ridiculous AI bubble nonsense.

No it isnt. Next word prediction is what humans do to communicate anyway so the criticism isnt valid. Except you do that for your own sentences (if you do it for others its considered rude :) ).

Anyways this criticism is now dated given that modern day LLMs can solve unseen reasoning problems such as those found in the IMO.

It does have something to do with the stock market, since its about making hypotheses and trading based off that. However, I'd agree that making a proper trading AI here would require reasoning based fine tuning for stock market trading actions. Sort of like running GRPO taking market feedback as the reward. the article simply cant do that due to not having access to the underlying model weight.

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