AI Trading Bots Are Booming—But Can You Trust Them With Your Money?
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In brief 17-year-old Nathan Smith made ChatGPT help him pick micro stocks and documented his open-source AI experiment on Substack and GitHub. Wall Street firms are quietly rolling out their own AI copilots, but experts warn: bots are fast, but not always wise. Generally speaking, AI agents and chatbots are better at fundamental analysis than reliable technical analysis. When 17-year-old Nathan Smith handed a ChatGPT-powered trading bot a portfolio of micro-cap stocks, it delivered a 23.8% gain in four weeks—outperforming the Russell 2000 and launching him from rural Oklahoma to viral Reddit stardom. Smith’s journey from rural high schooler to peak r/wallstreetbets poster boy is part of a bigger movement blossoming across the internet with traders building stock-picking systems around off-the-shelf large language models. The internet is littered with viral claims about AI trading success. One Reddit post recently caught fire after claiming ChatGPT and Grok achieved a “flawless, 100% win rate” over 18 trades with pretty big gains. Another account gave $400 to ChatGPT with the aim of becoming “the world’s first AI-made trillionaire” Neither post, however, has provided verification—there are no tickers, trade logs, or receipts. Smith, however, garnered attention precisely because he’s documenting his journey on his Substack, and sharing his configurations, prompts, and documentation on GitHub. This means, you can replicate, improve, or modify his code anytime. AI-powered trading isn’t just a Reddit fantasy anymore—it’s quickly becoming Wall Street reality. From amateur coders deploying open-source bots to investment giants like JPMorgan and Bridgewater building bespoke AI platforms, a new wave of market tools promises faster insights and hands-free gains. But as personal experiments go viral and institutional tools quietly spread, experts warn that most large language models still lack the precision, discipline, and reliability needed to trade real money at scale. The question now isn’t whether…
Filed under: News - @ August 4, 2025 5:26 pm