AI trading bots have gained attention after a 17-year-old, Nathan Smith, achieved a 23.8% return on micro-cap stocks using ChatGPT, outpacing traditional market benchmarks. As Wall Street firms like JPMorgan and Goldman Sachs integrate AI tools, caution is advised, as these models may excel at fundamental analysis but struggle with technical predictions. Experts highlight the risks of over-reliance on AI, with studies showing AI-assisted trades can yield poorer outcomes compared to human judgment. Many large language models exhibit issues with precision and reasoning when applied to trading decisions, necessitating human oversight. Overall, while the appeal of AI in trading is significant, the feasibility and reliability of these systems in managing real financial stakes remain uncertain, emphasizing the importance of careful risk management and the need for human involvement in decision-making.

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