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Using AI for trading (media.piefed.world)
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[-] burntbacon@discuss.tchncs.de 124 points 4 days ago

I would trust an 'ai' that had been designed from the ground up to do well in the stock market, just like I would trust an 'ai' that's been designed from the ground up to drive trains. Idiots who think an llm is an ai in anything but spitting out what seems like reasonable answers/responses to your inputs are, well, idiots.

[-] Aceticon@lemmy.dbzer0.com 8 points 4 days ago* (last edited 4 days ago)

Even then, and as I wrote in another post, a custom trading NN might be working a strategy which is fine under normal market conditions whilst leading to massive losses if those conditions change (i.e. "picking nickels in front of a steamroller") and because of the black-box nature of how Neural Networks work and their tendency to end up with the outputs being very convoluted derivations of the inputs (I expect even more so in Markets, were the obvious strategies that humans can easilly spot have long been arbitraged away, so any patterns such an NN spots during training will be so convoluted as to not be detectable by most humans), nobody will spot the risky nature of that strategy until getting splattered.

Neural Networks working in predicting market movements are, unlike a predictive text keyboard or even an automated train driver, not operating in a straightforward mainly non-adversarial enviroment.

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this post was submitted on 17 Nov 2025
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