Autopilot apps refer to apps that can automatically invest in the stock market on behalf of users. The idea originated from Tesla’s Autopilot driver assistance system. With the rise of AI and robo-advisors, more Autopilot investment apps emerge to help people invest. This article will analyze how Autopilot apps like The GPT Portfolio app leverage AI and evolve to assist stock investment.
The GPT Portfolio app tries automated stock investment
The GPT Portfolio app is created by a company called Autopilot. It tracks and copies the trading strategies of expert investors identified by its proprietary algorithms. Recently, it announced the launch of an investment portfolio solely directed by ChatGPT. The fund started with $50,000 and bought the top 20 stocks picked by ChatGPT out of over 10,000 stocks analyzed. In just over one week, the portfolio attracted over $6 million investment from over 10,000 participants. Compared to the S&P 500 index, this ChatGPT-directed portfolio achieved much higher returns in the same period.
The core algorithm behind The GPT Portfolio app
The trading strategy used by The GPT Portfolio app actually originated from a research by University of Florida finance professor Alejandro Lopez-Lira. In his unpublished paper, Prof. Lopez-Lira claimed that based on their research, ChatGPT was able to predict stock price movements and generate over 500% returns by analyzing news headlines to judge whether they are good or bad for the stock market.
Why The GPT Portfolio app gains attention
The GPT Portfolio app gains wide attention mainly because it offers ordinary investors a chance to leverage advanced AI for stock picking, which was previously only accessible by professional investment firms. According to Prof. Lopez-Lira, the predictability of market returns by such tools is only temporary. As more players adopt these tools, the market will become more efficient and return predictability will drop over time. So early adopters can benefit while late comers need to be cautious.
The future of Autopilot investment apps
In the future, more user-friendly Autopilot investment apps are expected to emerge. Powered by AI and big data, they can help ordinary investors pick stocks, trade automatically and optimize portfolio asset allocation. However, the core algorithms behind these apps need continuous improvement. Users also need to be aware of their limitations instead of overly relying on them blindly.
In summary, Autopilot investment apps like The GPT Portfolio app are evolving to assist stock investment by leveraging AI algorithms. While the returns seem appealing now, the actual long-term performance remains to be tested. Users should be cautious in adopting such tools.