3 - 5 minute read
Recently, the social media celebrity Biaheza uploaded a video in which he claimed to have developed an artificial intelligence (AI) trading bot. In the video, Biaheza brags about using chatGTP – sorry, chatGPT – to “come up with” a trading strategy for the bot and then providing it with a $50,000 trading budget. On closer inspection, however, it becomes evident that blindly trusting an unproven and faulty “AI bot” is a reckless and irresponsible proposition.
Initially, the AI bot was developed using a tool that was not intended for the complicated task of stock market trading. ChatGPT is essentially a sophisticated AI assistant that is capable of writing essays and developing simple games. Biaheza admitted in the video that he does not know how to code and had nothing to do with the bot’s creation. This calls into question the bot’s capabilities and dependability.
Worse still, Biaheza’s “AI” Trading Bot was actually just a standard trading bot using common moving averages and RSIs. ChatGPT, the tool supposedly used to create the bot, simply suggested indicators to Biaheza, who then hired a coder to turn the concept into a functional bot. In reality, there was no true artificial intelligence present in the bot itself.
In addition, the performance of the bot was determined by its ability to outperform notorious trading guru scammers. These folks are not legitimate traders, and they almost certainly do not trade at all. These individuals use their wealth, obtained through duping customers that they have a legitimate strategy, to buy extravagant items such as expensive jewelry and rent luxury cars. They then use these materials to brandish their supposed success and attract even more unsuspecting victims. Clearly, this was not a fair or accurate approach to evaluate the bot’s performance, and it’s completely unsurprising that the bot was able to outperform the guru’s signals.
But probably the most alarming part of this “AI bot” is that it was given a trading budget of $50,000 without any risk management strategies in place. A stoploss does not seem to have been programmed into the bot, which is a vital element of effective trading. This indicates that there was no system in place to prevent substantial losses if the bot made poor deals.
It is extremely irresponsible for Biaheza to portray this as a good idea to his massive audience. Asset trading requires an in-depth awareness of market patterns, economic conditions, and other elements that are currently beyond the capability of current AI. Especially when actual money is at issue, it is essential to conduct extensive research and avoid naively trusting the claims of those who lack knowledge on a subject. Maybe some day AI can make you millions on the stock market, but today isn’t that day.
