AI agents can be the best trading assistant in your life — The true potential of ChatGPT and other LLMs
The rise of ChatGPT has opened up exciting new possibilities for the trading industry — a new world that humans can work with intelligent agents. In this article, we will explore how these advanced AI agents are empowering traders to solve almost every problems in trading.
What are AI agents?
This is a simplified version of an AI agent: a body that can interact with the environment and take actions based on observations. Humans are advanced agents in this sense. If you come from the field of reinforcement learning, you should be very familiar with this graph.
So what to do with AI agents in trading?
Old problem, new solution
Making decisions in trading has always been challenging. Let’s think about the following scenario: You are optimistic in the technology industry and you want to put some money in the technology stocks.
First, you search for the best 20 tech stocks on Google. Second, you take a look at what these companies are doing one by one. Third, you study the companies more, read their financial reports, evaluate the company with metrics like PE ratio, revenue, EPS and etc. You are going to repeat the steps 20 times so after all these exhausting steps, you finally come up with a table and get your 5 valued picks. Congratulation after roughly 82 steps!
Thanks to the incredible reasoning ability and language skills. It is possible that you can TALK to your AI agent and the AI agent will take care of the rest. With only 2 steps you can get your picks. You just need to wait for the AI agent to finish its job.
The productivity brought by AI agents is amazing. Now what should we do if we want to start working with AI agents?
Build tools for AI agents
To make AI agents possible to work with you, you must provide them with some tools. Let’s circle back to our previous case. The agent may need the following tools:
1. SEARCH
AI agents can use it to search for company information on GOOGLE.
2. SUMMARIZE
AI agents can use it to summarize reports and company information.
3. CALCULATE_METRICS
AI agents can use it to calculate the metrics to compare stocks.
So now the AI agents can do the research for you, using their domain knowledge, reasoning, and language skill.
