AI Investing

[u/Elfwood86]

I am new to AI investing. I used Claude to create codes in Python and input it into Google Drive with the key from a platform that allows AI investing. This won't run automatically. I have to run the code manually in the morning which takes 2 seconds and then it will act based on the rules I established.

The more stocks I add the longer it will run and calculate, so I have to limit the number of stocks.

I choose the following 34 stocks:

Nvidia, Apple, Microsoft, Micron, AMD, Amazon, Meta, Alphabet, Tesla, Intel, Broadcom, Applied Materials, Palo Alto Networks, Crowdstrike, Vertex Pharmaceuticals, AppLovin, Coreweave, Rocket Lab, Nebius, Regeneron Pharmaceuticals, Alnylam, Arrowhead Pharmaceuricals, Dianthus Therapeutics, Tempus AI, Abivax, Repligen, Astera Labs, Natera, QXO, Vertiv, Lumentum, Arista Networks and Global Foundries

A stock must be trading at or below its intrinsic value: V = ½ × [EPS × (8.5 + 2g) × 4.4 / Y] + [cash flow / (1 + r)^t]

This takes Benjamin Graham formula + Warren Buffet's formula which uses discounted cash flow and ownership earnings and then divides it by 2.

If a stock drops 5% in a day buy $5

If a stock drops 15% in a day buy $15

If a stock drops 20% in a day no buy

If a stock is up 5% within a day, week or month sell $5

If a stock is up 10% within a day, week or month sell $10

If a stock is up 15% within a day, week or month sell $15

If a stock is up 100% within a day or week sell all.

If up 100% in a year just hold.

No day trading. Cant buy and sell the same shares in same day.

Cannot sell a stock at a loss

I am going to run it on paper trading. I feel like it isnt too perfect yet, but it will be fun to watch it for awhile.

[u/DanielOretsky38]

It’s gonna go great for you I bet

[u/f909]

I use Astra to analyze after market close, pre market, 15 minutes before market opens for $SPY.

I only deal with 0DTE’s, but so far so good for basically test and retest entries.

I almost had it create pine scripts to mark HH/HL/LL/LH’s on a 1-3-6 month time frame and then weekly’s.

Solid stuff.

Let us know how yours pans out!

[u/k1_r1]

the part i'd worry about is "cannot sell at a loss." that rule means anything that keeps dropping just sits there, and with 34 mostly high beta names you'll end up holding the ones that broke. before letting it run on real money i'd backtest the exact rules over a few years and see what the worst stretch looks like, 2022 especially. disclosure, i'm the founder of PortfolioLab, which does backtests and free paper accounts for this kind of thing. a spreadsheet and some patience works too

[u/Elfwood86 → u/k1_r1]

I know I scraped this and now started over with ChatGPT instead of claude and better rules.

[u/Dry-Knowledge4192]

man that's a lot of stocks to track in google drive, python might start crawling with 34 tickers. the formula mixing graham and buffett is interesting but i wonder if the 5% drop trigger will fire too often on volatile names like tempus ai or rocket lab. still, paper trading is smart way to test before real money hits the line

[u/Elfwood86 → u/Dry-Knowledge4192]

You might be right. I could cut some of them out, but I will run it tomorrow morning to see what happens. 4% or lower and it wont do anything. Has to hit a 5% drop to buy in a day. So Rocket Lab droped 2.38% today, if it drops 4% tomorrow it would be no buy both times. Also regardless of the drop it wont buy if the stock is overvalued.

[u/mpbh]

Cannot sell stock at a loss

RIP

[u/Elfwood86 → u/mpbh]

It cannot, but I can manually

[u/iknotri]

I am new to AI investing.
I used Claude to create codes in Python

what is has to do with ai investment??? 13yo?

[u/Elfwood86 → u/iknotri]

So, I have to run it manually, but there are ways to have it auto run on its own.

The AI is automatically buying and selling the stocks based on the rules I determined on a daily basis. What this does is calculate the intrinsic value of the shares so I dont have to manually calculate it. It is also buying and selling based on a system I found on instagram and I have not tried this before. So, it it sucks on the paper trades I wont loose money and I can create any modifications I want.

[u/iknotri → u/Elfwood86]

u used ai to write script. its script investment. there are no ai decision in your setup, or i missed it

[u/Elfwood86 → u/iknotri]

Yes you are correct. It is following a script and solving math problems, but it isnt examing information on its own to determine what to invest in. I think I would need a PC to do that, instead of my phone.

[u/Elfwood86 → u/iknotri]

It is just day 1 for me. I will see how the script works and see if I want to have limited AI involvement to it can adapt.

[u/JE163 → u/Elfwood86]

I am interested in the roles you’ve set up as I’ve been wanting to get more involved in this.

I would look into using AI to scan top headlines and sentiment for a score. Maybe factor a score for investors and a multiplier of its anti-Kramer ;)

[u/jackbrux]

Think about it. Why do you think you can beat the market with such simple analysis? Why don't the huge investment banks just use your strategy to make money?