ChatGPT, the advanced AI language model, is set to take on the trading world with a real $50,000 portfolio, following a successful algorithm created by a renowned AI expert. This week, the team behind ChatGPT, met with specialists, including a Wharton PhD and University of Florida professor Alejandro Lopez-Lira, who developed a ChatGPT algorithm that returned an impressive 400%.
For those eager to join the ChatGPT portfolio, the opportunity will be available. The investment option will launch on the same day as the first batch of trades allowing interested parties to potentially benefit from the AI's trading prowess.
Starting Monday, ChatGPT will begin trading the $50,000 portfolio, implementing the insights gained from their meetings. A dedicated account, @chatgpttrader, has been created to keep followers updated on the algorithm's workings, stock picks, analysis, performance and more.
Last week we set ChatGPT up with a real $50K portfolio— Chris Josephs (@Chrisjjosephs) May 11, 2023
This week, we met with AI experts including the creator of a ChatGPT algorithm that returned 400%
On Monday, ChatGPT will begin trading that $50K portfolio based on the learnings that we found
Here's how to follow along pic.twitter.com/IUluToEsOh
Alejandro Lopez-Lira, the man behind the 400% return, utilized GPT to analyze news articles and buy or sell stocks based on the sentiment derived from the headlines. This groundbreaking approach outperformed traditional sentiment analysis methods and returned a staggering 400% (before transaction costs).
The study found that ChatGPT was able to accurately predict stock market returns using sentiment analysis of news headlines, determining whether the news was good, bad or irrelevant for a firm's stock price. By assigning a numerical score, a positive correlation was observed between the ChatGPT scores and subsequent daily stock market returns.
In addition to traditional stocks, ChatGPT's entry into the trading world also has potential implications for cryptocurrencies and digital assets. Furthermore, given the volatile nature of cryptocurrencies, the application of AI-powered sentiment analysis could help traders and investors navigate often uncertain market conditions more effectively. ChatGPT could offer valuable insights to optimize trading strategies and investment decisions in a rapidly growing crypto market.