
TL;DR
This study evaluates GPT-4's understanding and application of classic trading theories, like Elliott Wave, in analyzing real-world stock data, to assess its reliability and potential to aid human traders.
Contribution
It provides a systematic assessment of GPT-4's comprehension of trading theories and its effectiveness in practical data analysis, highlighting its strengths and limitations.
Findings
GPT-4 demonstrates a notable understanding of technical trading theories.
The analysis reveals areas where GPT-4's interpretations align or diverge from established theories.
Insights from GPT-4's analysis can inform better integration of AI in trading strategies.
Abstract
Recently, large language models (LLMs), particularly GPT-4, have demonstrated significant capabilities in various planning and reasoning tasks \cite{cheng2023gpt4,bubeck2023sparks}. Motivated by these advancements, there has been a surge of interest among researchers to harness the capabilities of GPT-4 for the automated design of quantitative factors that do not overlap with existing factor libraries, with an aspiration to achieve alpha returns \cite{webpagequant}. In contrast to these work, this study aims to examine the fidelity of GPT-4's comprehension of classic trading theories and its proficiency in applying its code interpreter abilities to real-world trading data analysis. Such an exploration is instrumental in discerning whether the underlying logic GPT-4 employs for trading is intrinsically reliable. Furthermore, given the acknowledged interpretative latitude inherent in most…
Peer Reviews
No public reviews on file for this paper yet. If you reviewed it on a platform where reviews are public (OpenReview, ICLR, NeurIPS, ICML), you can paste yours below so the community can read it here.
Videos
No videos yet. Explain this paper in a talk, walkthrough, or lecture? Add one.
Taxonomy
TopicsStock Market Forecasting Methods
MethodsMulti-Head Attention · Attention Is All You Need · Softmax · Dense Connections · Position-Wise Feed-Forward Layer · Absolute Position Encodings · Residual Connection · Adam · Linear Layer · Dropout
