By Hari Haran
In an innovative move, a group of Twitter users have launched a $3 million challenge to see if ChatGPT, a new AI-based chatbot, can outperform traditional hedge funds.
The challenge is the first of its kind and marks a pivotal moment in the history of artificial intelligence.
The outcome of the challenge will be a major step forward in the potential of AI to help investors make better financial decisions.
This blog post takes an in-depth look at the challenge and what it could mean for the future of investing.
How will chatgpt impact in stock Prediction?
ChatGPT is a powerful language model that has the ability to process vast amounts of data and make predictions based on that data.
It is being used to help investors predict stock prices and trends in the market. The Twitter community has launched a challenge to see if ChatGPT can beat out hedge funds in predicting the performance of the stock market.
Hedge funds are known for their sophisticated algorithms and highly trained analysts who comb through data to make investment decisions.
But with the advent of machine learning and artificial intelligence, ChatGPT may have an advantage.
ChatGPT works by processing large amounts of text and identifying patterns in the data.
It can analyze news articles, social media posts, and other sources of information to make predictions about the market. By training the model on historical data, it can learn to recognize trends and make predictions about future market performance.
The Twitter community has set a challenge to see if ChatGPT can outperform hedge funds in predicting stock prices over the next year. They have raised $3 million to invest in the market based on the predictions of ChatGPT.
While it remains to be seen whether ChatGPT will outperform hedge funds, the challenge highlights the potential of artificial intelligence in the financial industry.
With its ability to process vast amounts of data quickly and identify patterns that humans may miss, ChatGPT could revolutionize the way investors make decisions in the future.
How does it work?
To test whether or not ChatGPT can outperform hedge funds, developers jailbroke the AI to parse stock news articles and identify relevant trends.
To supplement its data, developers also supplied ChatGPT with up-to-date macroeconomic information. The next step involved extracting the most recent news articles for all listed stocks with a market cap greater than $300 million.
He then bought the top 20 stocks and conducted their analysis to buy and hold them for somedays and repeat that process.
While this experiment may seem radical, research published by the University of Florida has suggested that trading models based on ChatGPT can generate returns of up to 500% over a 20-year period.
Developers were pleased to find that the GPT-4 score performed better than that of the GPT-3.
This breakthrough is remarkable, considering that just a few years ago, ChatGPT’s technology was primarily known for its conversational abilities.
As artificial intelligence models become more sophisticated, AI is likely to become a cornerstone of stock market prediction.
This technology has been embraced by the industry’s most prestigious firms, including Bloomberg, which recently announced the creation of BloombergGPT, a sizable artificial intelligence model.
With these advancements, we can expect the finance industry to undergo significant changes, ultimately improving our investments’ performance.