A researcher at the World Bank has published a paper saying that ChatGPT can generate stock tickers that provide a profitable day trading strategy.
I haven't read it yet, here is the link.
From the abstract:
- I show that ChatGPT can generate stock tickers that provide a profitable day trading strategy.
- Using input prompts as multiple Twitter posts, including both macro and firm-specific news by major news providers, I ask ChatGPT to generate lists of stock tickers to buy and sell.
- The trading strategy based on the buy and sell lists earns significant long-short returns in open-to-close intraday trading.
In the paper its noted that ChatGPT suggests "that tech stocks are important for the buy list". I wonder if this (Magnificent 7 related) hindsight bias?
