In recent times, there has been growing attention towards an application called “Autopilot.” However, this particular “Autopilot” is not Tesla’s assisted driving system, but rather an automatic stock trading application developed using ChatGPT technology.
Victor Yang recently shared his investment portfolio with friends on social media, revealing a 1.3% increase in his stock value in a single day. In comparison, the Infico QQQ ETF (QQQ), which tracks the Nasdaq 100, rose by 2.56%, while the SPDR S&P 500 ETF (SPY), which tracks the S&P 500, increased by 1.5% on the same day.
Victor attributed his successful trades to ChatGPT, the application he referred to as Autopilot. Following his post, numerous friends inquired about the app’s download method, usage, and any other recommendations.
“Many of these friends work in various industries, including technology, but they were all amazed by ChatGPT’s efficiency and judgment. They were eager to experience the app’s remarkable capabilities,” Victor explained. He initially discovered the Autopilot software through tweets discussing “GPT Portfolio” on Xiaohongshu.
After visiting Autopilot’s app registration page, users are presented with various AI services to choose from, with GPT Portfolio listed at the top. The company stated that the app utilizes ChatGPT for advanced sentiment analysis of recent news in order to provide stock selection recommendations.
Once users grant access to this service on trading platforms like Robinhood, Webull, and Fidelity, the system can automatically execute buying and selling actions. GPT Portfolio currently holds stakes in 20 companies, including AMD, Microsoft, Domino’s, Procter & Gamble, and Starbucks, as of Tuesday’s data.
Founded in 2020, Autopilot is a California-based company comprising a small team that was previously known as Iris Finance. In its early stages, the company studied the investment actions of well-known figures such as Nancy Pelosi, Warren Buffett, Jim Cramer, and Michael Burry (featured in “The Big Short”) to provide users with imitation investment suggestions. Autopilot also examined hedge funds like Citadel to make its proposals more actionable.
On May 16, Autopilot launched the GPT Portfolio project after being influenced by a CNN report titled “ChatGPT Stock Selection is More Effective Than Your Fund Manager.” They invested $50,000 as startup capital to test ChatGPT’s investment judgment against hedge funds. The app also allows users to integrate this service into their trading platforms for automated transactions.
CNN referenced experimental results from the financial website finder.com in their report. Finder analysts instructed ChatGPT to select stocks based on common criteria, such as low debt and a track record of growth, which led to the selection of companies like Microsoft, Netflix, and Walmart. The resulting stock portfolio outperformed some of the UK’s popular investment funds. Between March 6 and April 28, the virtual portfolio of 38 stocks gained 4.9%, while the top 10 investment funds experienced an average loss of 0.8%.
Autopilot’s GPT Portfolio is rapidly attracting users. Within two days of launch, by May 18, nearly 15,000 users joined, contributing a total of $8 million to the investment pool. As of May 30, the number of users surpassed 25,000, with investment funds exceeding $15 million.
However, Autopilot doesn’t always guarantee the best returns. A user named @nextSignals shared on Twitter that on their first day using Autopilot, the app executed 20 trades through their TD Ameritrade account, resulting in a 0.73% return over five days. In the same period, SPY returned 1.42%, and QQQ returned 3.18%.
Additionally, there are concerns surrounding Autopilot. Some individuals view it as a relatively new third-party application. Granting the app access to their trading accounts doesn’t guarantee 100% security, and a hacked program could pose significant risks to personal information, securities, and funds. Some users also express concerns about the transparency of GPT Portfolio’s stock selection criteria, as well as worries that high-frequency automated trading may be seen as “wash trading,” which could lead to tax penalties.
“For now, my friends and I don’t expect significant profits from ChatGPT Autopilot Portfolio. It’s primarily for fun and testing,” Victor commented. “Whether this will be the future or not, we should embrace new technologies and give them a try.”
A recent JPMorgan survey confirms the potential impact of AI on securities trading. More than half of institutional traders believe that AI and machine learning will play a crucial role in the future of work. The financial giant is reportedly developing a software service called IndexGPT, which will be used similarly to ChatGPT for selecting investment options for clients.
On May 25, Autopilot’s co-founder, Chris Josephs, tweeted that the company achieved a milestone of $1 million in annual revenue (ARR) within four months of launching, contributing to over $100 million in deals and boosting assets under management (AUM) to over $31 million. However, Josephs’ tweet did not specify how much of that was attributable to GPT Portfolio.
Read Also: ChatGPT’s Robotic Tomato-Picker Revolutionizes the Farming Industry
Do not forget to follow us on our Facebook group and page to keep you always aware of the latest advances, News, Updates, review, and giveaway on smartphones, tablets, gadgets, and more from the technology world of the future.