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I got a theory , if you write robust stand the test of time algos , you trade them not sell them . Said as much on this as i am ever going to .

I have better things to do with my time .
 


A Real-life Investment Strategy
The objective of this 12-month real live experiment is to explore the feasibility of deriving a sustainable income from a portfolio of five investments, based on three key principles: (1) Dividends, (2) Franking Credits, and long-term (3) Capital Gains.

Just to put things into perspective
As of the close of trade yesterday Thursday the 21st of March 2024, the investment strategy had netted a gain of $61,358. However, today’s market activities resulted in a loss of $21,772, bringing the weekly return down to $39,585. While such swings may not be welcome, they are part and parcel of the market dynamics and should be viewed as short-term fluctuations. Remember, it’s the long game that counts,

After 15 weeks of this experiment
# Dividends and Franking credits = $0.00
# Capital Gains = $45,808
# Weekly Average = $3,054






Skate.
 
TimeISmoney said:
I've done 2 x AI experiments, all stocks picked by AI last week. Results are better than I though they would be.


View attachment 173178

View attachment 173179

AI picks portfolio 2
View attachment 173180

View attachment 173181
Click to expand...

Ask any (AI) the same question and they will give you a different answer every time
List 5 stocks on the ASX:XAO that may increase in price over the next 12 months. Here are five stocks listed on the ASX that have shown potential for growth in the past and could be worth considering for your investment portfolio:

1. Xero Limited (XRO.AX) - Xero is a cloud-based accounting software company that has been growing rapidly in recent years. It has a strong track record of revenue growth and has expanded its customer base significantly.
2. Altium Limited (ALU.AX) - Altium is a software company that provides design and development tools for the electronics industry. It has a strong presence in the global market and has been growing its revenue steadily.
3. Appen Limited (APX.AX) - Appen is a technology services company that provides data annotation and labeling services for various industries. It has been growing rapidly and has a strong track record of delivering high-quality services.
4. WiseTech Global Limited (WTC.AX) - WiseTech is a software company that provides logistics and supply chain management solutions. It has been growing rapidly and has a strong presence in the global market.
5. Afterpay Touch Group Limited (APT.AX) - Afterpay is a financial technology company that provides payment solutions for consumers and merchants. It has been growing rapidly and has a strong track record of delivering innovative payment solutions.

(AI) Disclaimer
It's important to note that these are just a few examples of stocks that have shown potential for growth, and it's essential to do your own research and consider your own financial goals and risk tolerance before investing.

Skate.
 
Skate said:
Ask any (AI) the same question and they will give you a different answer every time
Click to expand...

Here is another 5. top pick for an alternative (AI)
Based on the information provided, here are five ASX stocks that have shown potential for growth and could be worth considering for investment:
  1. NextDC (ASX: NXT): This company is experiencing booming data center demand driven by cloud and AI, making it a contender for potential growth in the next year.
  2. Webjet (ASX: WEB): With the travel recovery continuing and online bookings expected to surge, Webjet is another ASX 200 contender for potential growth in the next 12 months.
  3. Altium (ASX: ALU): Altium brings together a long tailwind, a history of executing on growth, and a commendable balance sheet, making it a strong consideration for exposure to AI.
  4. BrainChip (ASX: BRN): This stock has shown plenty of growth potential, with shares up significantly in the past.
  5. WiseTech Global (ASX: WTC): This company stands out as a prudent investment choice, underpinned by its steady and impressive financial performance and strong corporate governance principles. The company has demonstrated a consistent growth trajectory, with its Earnings Per Share (EPS) increasing by 8.5% annually over the past three years and a notable 29% rise in revenue to AU$817m
(AI) Disclaimer
It's important to conduct thorough research and due diligence before investing in any stock to understand the company's business model, growth prospects, and potential risks.

Skate.
 
@TimeISmoney - Here we go again
Let’s delve into the world of stock picking. In this corner, we have Tobias Yao from Wilson Asset Management, and in the other corner, we’ve got Microsoft Edge Copilot. They’re about to battle it out in the realm of ASX growth stocks for the next 12 months. Both were tasked with providing their "top five growth and income stocks" for the next 12 months on the ASX200.

(a) Microsoft Copilot AI
Bard is “your everyday AI companion.” a chat interface that lets you search for specific information, generate summaries, and create responses to the prompts you write or questions you ask.

(b) Tobias Yao
Portfolio Manager of Wilson Asset Management. Tobias joined Wilson Asset Management in 2014 and works within WAM Capital, WAM Microcap, WAM Research and WAM Active. Tobias has over 13 years of experience in the investment industry. Prior to this he spent five years as an investment analyst at Pengana Capital, and previously worked in Ernst & Young’s transaction advisory services division.

(a) Microsoft Copilot (AI) Picks
1. NextDC (ASX: NXT): A contender in the data center space, NextDC aims to capitalize on the growing demand for cloud services and data storage.
2. Webjet (ASX: WEB): Webjet operates in the online travel booking industry, and its growth potential lies in the recovery of the travel sector.
3. Life360 (ASX: 360): Life360 provides family safety and location-sharing services through its mobile app. As families increasingly prioritize safety, this company could see continued growth.
4. Flight Centre (ASX: FLT): Despite challenges during the pandemic, Flight Centre remains a player in the travel industry. Its recovery could drive growth.
5. Lovisa Holdings (ASX: LOV): Lovisa is a fashion jewellery retailer with a focus on fast fashion. If consumer spending rebounds, Lovisa may benefit.

(b) Tobias Yao’s Picks
1. Life360 (ASX: 360): Tobias also sees potential in Life360, emphasizing its family safety services.
2. Tuas Limited (ASX: TUA): Tuas operates in the renewable energy sector, and its growth prospects align with the global shift toward cleaner energy sources.
3. Temple & Webster (ASX: TPW): As online retail continues to thrive, Temple & Webster, an online furniture and homewares retailer, could be a growth contender.
4. Siteminder (ASX: SDR): Siteminder provides hotel technology solutions. With travel rebounding, its services may be in demand.
5. Megaport (ASX: MP1): Megaport offers elastic interconnection services, connecting businesses to cloud providers. As cloud adoption grows, Megaport could benefit.

Remember, this is all in good fun, but it highlights the evolving landscape where AI tools like BARD and human experts like Tobias Yao contribute to decision-making.

Skate.
 
Skate said:
2. Tuas Limited (ASX: TUA): Tuas operates in the renewable energy sector, and its growth prospects align with the global shift toward cleaner energy sources.
Click to expand...
HUH ??

i hold TUA ( ever since it demerged from TPM/TPG )

am not sure how a Singapore based telco is going to swap paths without a lot of solar panels

Tuas Limited (TUA) and its controlled entities consists of Tuas Limited and its wholly owned subsidiaries Simba Telecom Pte Limited, Tuas Solutions Sdn Bhd ,Simba 5G Pte Ltd, Netco East Pte Ltd and Netco West Pte Ltd. Simba owns and operates a modern telecommunications infrastructure that provides both national mobile coverage and high-speed broadband services. Simba first acquired a portfolio of wireless spectrum at the New Entrant Spectrum Auction in December 2016.

according to Bell Direct

and sadly that is the pick of an experienced human , you would just chuckle if an AI made that mistake
 
I asked the same question a few times on the day and got fairly similar responses.

I can't exactly remember what I asked but it is something like 'what are the best Australian growth stocks' . Both AI sites gave me a disclaimer that the stock market changes daily and you need to monitor it to make sound choices.

There must be ways to fine tune AI so that it's responsive to the stock market vulnerabilities over time, but all the same I'm impressed.

I'll keep everyone updated over time, not the type of stocks that I would pick for my own personal risk level but I'll call it AI beginners luck for now.
 


I've been thinking about the (AI) stock-picking experiment and whether it's worth continuing. Here are some points to consider.

1. Understanding (AI) capabilities
This exercise was to demonstrate if (AI) could be used in real-world scenarios, providing valuable insights into (AI's) strengths and limitations.

2. Comparative analysis
Comparing (AI) and human performance over a year was to reveal if they can complement each other in decision-making or if one better than the other.

3. Educational value
Ultimately, the goal was to prove if one method was superior and to explore how they could work together.

# If you find value in these points, it might be worth continuing the experiment.

What do you think? Let me know.

Skate.
 


Is this exercise worth continuing?
In this exercise, we put "Google (AI) Gemini" head-to-head with seasoned fund manager Dr. Don Hamson from Plato Investment Management. Both were tasked with providing their "top five growth and income stocks" for the next 12 months on the ASX.

First Place - $6,603
# Google Gemini (AI) - RED line on the equity chart

Second Place - $3,912
# Dr. Don Hamson (Expert) - BLUE line on the equity chart

Third Place - ($919)
# Skate - BROWN line on the equity chart






Skate.
 
How Will Artificial Intelligence (AI) Revolutionise Trading and Investing?
As I pondered the potential impact of Artificial Intelligence (AI) on trading and investing, I decided to put it to the test. I posed a single question to the AI model at “YOU.com”:

“Identify 5 stocks from ASX:XAO that are predicted to show the most growth in the next 12 months.”

In the upcoming posts, I’ll share the AI model’s responses to this question, along with some follow-up queries. I’ll also discuss my key takeaways from each interaction we had. Keywords of importance will be underlined.

Skate.
 
#1. MY INITIAL QUESTION TO "YOU.com" their (AI) model
“Identify 5 stocks from ASX:XAO that are predicted to show the most growth in the next 12 months.”

"YOU.com" RESPONSE
Top 5 ASX:XAO Stocks for Potential Advancement in 12 Months. Based on the provided search results, here are five ASX:XAO stocks that have been mentioned as potential candidates for advancement in the next 12 months:

1. FINEOS Corp Holdings PLC (FCL): This company has been identified as offering great value and is a top pick for investors wanting to boost their domestic exposure.

2. Endeavour Group Ltd (EDV): Endeavour Group Ltd has been mentioned as one of the top picks for investors wanting to boost their domestic exposure, indicating it may have potential for advancement.

3. PEXA Group Ltd (PXA): PEXA Group Ltd has been highlighted as one of the high-quality companies offering great value right now, suggesting it may have potential for advancement.

4. Newmont Corp (NEM): Newmont Corp has been mentioned as one of the top picks for investors wanting to boost their domestic exposure, indicating it may have potential for advancement.

5. The a2 Milk Co Ltd (A2M): The a2 Milk Co Ltd has been identified as one of the high-quality companies offering great value right now, suggesting it may have potential for advancement.

These stocks have been identified based on their potential value and performance, as mentioned in the search results.

# Well, the response from "YOU.com" raised a few red flags for me.

Skate.
 
AI will be used in investing decisions , either openly or covertly primarily by fund managers as they strive to cut costs ( and staff )

now will these fund managers use AI in combination with humans or replace the humans where possible ?

as an example take two LICs i hold BKI and WAX

they are very different BKI is very conservative and low fee while WAX is very active and higher risk-taking , and higher fees ( but 'div. smooths ' )

BKI might struggle to improve with the help of AI , relatively low portfolio turnover and sticks to well-understood companies

while WAX often chooses smaller/mid-cap stocks looking for probable large moves ( M&A activity , pivotal moments in company transitions ( like first operating profits , successful restructures , etc etc ) while AI might be very helpful at WAX ,( screening new targets , in-depth on the financials )


continue ?

i think yes ( if convenient )

it will be interesting to see if any ASF members will use AI to enhance their stock-scanning abilities ( kind of hard to keep watch of those 1000 plus small caps )
 
with this experiment , are you adding in dividends into the results

( i know you intend to in the real-life ' portfolio experiment )

cheers
 
almost a 'blood in the streets ' strategy ( or 'dogs of the ASX ' strategy ) in this batch , but you did ask for 'potential' so YOU.com might be very 'key-word' focused something to remember when using it ( could be awesome or BAD , depending on the key-words selected )

and that might be a lesson in itself

i have recently abandoned EDV , and hold PXA courtesy of the LNK divestment

edit

'growth' not potential .. my bad

you might have to ask YOU/com for it's definition of 'growth ' ( ie share price, earnings , profits ?? )
 
Using a "google type search
In the last post, I underlined keywords from the response of "You.com" (AI) Subscription Service. I went on to explain my understanding of the procedure of how (AI) should pick stocks to trade, and why "You.com" didn't use these capabilities. I then went on to list my understanding of the process.

#2. MY TWO FOLLOW-UP QUESTION TO "YOU.com"

1. Why are you getting your information from Morningstar.com.au?
2. Why aren't you using (AI) ability for research?

# I explain my understanding of the procedure of how (AI) should pick stocks to trade.

1. Data Collection: (AI) algorithms collect vast amounts of data on various factors that can impact stock prices, such as financial statements, economic indicators, market trends, and news.

2. Data Analysis: (AI) algorithms analyse the collected data using various techniques, such as machine learning, natural language processing, and statistical modelling, to identify patterns and trends that can indicate potential stock price movements.

3. Predictive Modelling: (AI) algorithms use the insights gained from data analysis to build predictive models that can forecast future stock prices. These models take into account various factors, such as market sentiment, economic indicators, and company performance.

4. Stock Selection: (AI) algorithms use predictive models to identify stocks that are likely to outperform the market or exhibit strong growth potential. They may also use techniques such as factor analysis, clustering, and optimisation to identify the most promising stocks.

5. Risk Assessment: (AI) algorithms assess the risk associated with each stock pick, taking into account factors such as market volatility, industry trends, and company fundamentals. They may also use techniques such as portfolio optimisation to minimize risk and maximise returns.

Overall, (AI) stock picking involves using machine learning and other advanced technologies to analyse vast amounts of data, identify patterns and trends, and make predictive models that can help investors make informed investment decisions and all you did was a "Google" type search referencing Morningstar.com.au which to me belittles the use of and the practicality of the responses you gave.


"YOU.com" RESPONSE
I appreciate the detailed explanation of how AI algorithms can be used to pick stocks for trading. While the information you provided outlines a comprehensive process for AI-driven stock selection, it's important to note that the search results provided by You.com primarily included references to Morningstar, Inc. and its products and services. As an AI language model, my responses are based on the information available in the search results, and in this case, the search results primarily referenced Morningstar's involvement in AI and investment-related activities.

It's important to consider that the use of AI for stock picking involves complex data collection, analysis, predictive modelling, stock selection, risk assessment, trade execution, and ongoing monitoring and adjustment, as you outlined. However, the specific application of AI for stock picking may vary across different platforms and financial institutions.

If you have specific questions about the application of AI for stock picking or would like to explore this topic further, I'd be happy to discuss it in more detail and provide additional insights based on the information available.

Skate.
 
#3. MY THIRD FOLLOW-UP QUESTION
Why didn't you use your (AI) capabilities for stock picking by using complex data collection, analysis, predictive modelling, stock selection, risk assessment, trade execution, and ongoing monitoring and adjustment, as you outlined?

"YOU.com" RESPONSE
I understand your concern, and I appreciate your feedback. The information you provided from the search results sheds light on Morningstar's use of artificial intelligence in investment research and data analysis. It's clear that Morningstar has developed AI-powered tools, such as the Morningstar Intelligence Engine and the AI chatbot Mo, to assist users in accessing investment research and data. In this case, the search results primarily referenced Morningstar's involvement in AI and investment-related activities, which is why the information about ASX:XAO stocks was drawn from Morningstar.com.au. As an AI language model, my responses are based on the information available in the search results, and in this instance, the search results prominently featured Morningstar's AI capabilities in the context of investment research and analysis.

My key takeaways from each interaction we had
Less than useful. I expected more.

Skate.
 
divs4ever said:
continue ?

i think yes ( if convenient ) it will be interesting to see if any ASF members will use AI to enhance their stock-scanning abilities
Click to expand...

@divs4ever, thank you for responding.

divs4ever said:
with this experiment , are you adding in dividends into the results ( i know you intend to in the real-life ' portfolio experiment )
Click to expand...

@divs4ever, this 12-month exercise is exclusively focused on tracking the “Capital Growth” of five selected companies from each participant. The results will reflect the continuous difference between the purchase price and the current market price of these stocks. Any dividends distributed during this period "will not" be factored into the ongoing analysis.

Skate.
 
now although i don't trade ( as such )

maybe AI could be directed at detecting stocks with increasing momentum ( share turnover ) combined with increasing/decreasing share price ( for those that write options or short sell )

trading styles can be very complex , from basic channel-trading , swing-trading trend trading , scalping etc etc

while investing can be very subtle , say buying ex-div. on a 3 monthly ( or monthly ) payer or waiting for a retrace
 
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