Update: Adventures in AI Stock Picking

So I wrote the initial story 12 days ago about how I’m doing this experiment of letting AI pick my stocks for me. The time-horizon of that experiment is three months per Danelfin, the AI tool I’m using. And I’m going to buy/sell for at least a year to see how it goes.

To recap my logic, I’m trying to remove emotion from my investment decisions. It’s like gambling in a casino. The best way to minimize losses is to decide how long you’re going to play and then stop at that time, no matter whether you’re up or down. Remove the emotion. Otherwise you’ll only stop when you lose all your money. Casinos all know this, which is why there are no clocks in Las Vegas casinos.

So I have my rules in place. Buy at AI score of 9, sell when they drop to 7 or lower. I’ve added a rule, because two days after setting this all up, Danelfin’s emails to me started going into my spam folder and I missed an alert that one of my stocks had fallen to 7. By the time I noticed the next day, it was back up to an AI score of 8, no action needed. It seems unreasonable to me that I should make trading decisions that are only valid for 24 hours, so I’ve decided I’ll sell a stock only if it falls to 7 or below for two days in a row.

With that said, how is it going so far?

Total purchase price of my 10 stocks was $99,372. After 11 days, value is now $93,830. A drop of 5.5%. During the same timeframe, the S&P 500 has gone from 4450 to 4443, a drop of 0.1%, or as most people would say, ‘nuthin’.

This means that I only need to hold on to these stocks for another seven months or so and I’ll lose the entire $100k investment. That’s pretty impressive, even by my standards. Normally it takes me a few years to lose my entire investment.

Of course we know that’s not what’s going to happen. AI is amazing. AI is the future. I just have to give it time, and nobody is telling me to sell in any case. HODL! Has anyone else seen the GameStop/Robin Hood movie, “Dumb Money”? It premiered at the Toronto International Film Festival sans celebrities last week. Amazing movie and story. I’m guessing Roaring Kitty wasn’t even using AI, imagine how famous I’m going to get! To the moon Sanjay!

Next update coming when I actually sell something and lose real money. Maybe.