AI Assisted Financial Strategies
Be Careful before using Financial Automation tools.
Last week I talked about applying Pathfinder algorithms to DeFi investment strategies. Something that sounds exciting, and it is. As humans we have the instinct to survive and the ability to make wealth systemically sounds very appealing.
I think this was the reason the last post got a bit more engagement than previous publications, and most of the comments and follow-up questions were: how can I see these algorithms applied to an investment strategy? A fair enough question, that I not being a financial advisor, don’t consider myself qualified to answer and explain. Nevertheless, I find it interesting to answer the question:
What AI-powered tools are out there for nontechnical and nonfinancial persons?
Or framing better questions:
What are the most UX-friendly financial AI tools at the beginning of Q424?
I don’t know lol.
But I checked out four and here is what I learned.
ChainGPT offers a comprehensive AI suite designed for the blockchain and crypto ecosystem. It provides tools like AI-driven smart contract generation and auditing, NFT creation, AI-generated news, and AI trading assistants.
The ability to create automated workflows that give you valuable trading insights, predictions, and strategy is very cool. Something also cool about ChainGPT is that you have strong support and a knowledge base from the community.
StockGPT is my favorite because you can use natural language to interact and access its features. It Is an AI-powered platform tailored specifically for stock market analysis. It uses natural language processing to generate insights and analysis based on large datasets of financial information, helping users make informed investment decisions.
It aggregates and interprets vast amounts of financial data to provide actionable insights, helping users stay ahead in the market. It is like having your own S&P 500 and Nasdaq personal intern dropping you automated analysis.
Composer is also one of my favorites because it is the only one focused on automation. It allows users to create, backtest, and automate trading strategies. It provides a no-code environment where users can design custom strategies or use pre-built templates, and automate their execution. It is meant for retail investors and financial advisors looking for a platform to automate and optimize their investment strategies without needing to write code. Two cool automation flows you can set up with Composer are:
AI-assisted strategy creation based on user-defined goals and risk tolerance.
Automated trading execution with options for rebalancing.
Just to remind you the risk of automation is that when something is wrong it scales automatically. One plus you will have historical performance of their strategies, reducing risk before implementation.
Public is a social investing platform that allows users to trade stocks, ETFs, and crypto while interacting with other investors. It emphasizes transparency, with features like fractional shares and no payment for order flow. The killer AI feature is that you can enable AI automation to follow other public investment strategies. The most social tool mentioned in this Sub. It enables participation and conversation as a learning tool for their audience.
These tools are amazing, some of them like Chain and Composer also offer Tax declaration AI assistance, their learning modules are not just focused on developing investment and financial skills, but also personal financial education. Like managing your score credit, creating a budget, and Tax strategy. Other great tools for this purpose are Cleo and Fina.
I learned from my last post that investing is something appealing almost to everyone. But there is a degree of responsibility over how you plan your investments, and how you manage your money.
Be smart before beginning experimentation.